In an attempt to prevent financial fraud, an Australian regulator is cracking down on bitcoin (BTC) and crypto ATM operators.
AUSTRAC, which acts as both Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) regulator and financial intelligence unit, said it has refused to renew the registration of a crypto ATM operator, Harro’s Empires, while also placing operating conditions, such as AUD $5,000 transaction limits, on other Australian crypto ATM providers.
The regulatory body said that over several months, they witnessed "customer activity that bears the hallmarks of scams, fraud, and other illicit activity."
However, AUSTRAC didn’t say whether any of these suspicious activities resulted in losses, money laundering, or charges, only saying that they're working with law enforcement partners and crypto ATM providers to solve the problem.
In either case, the regulator has noted that people aged 60 to 70 were identified among the most prolific users of these ATMs in Australia, as they accounted for 29% of all transactions by value. Meanwhile, 72% are attributed to people over 50.
"It is a huge concern that people in this demographic are overrepresented as customers using cash to purchase cryptocurrency and, as evidence suggests, that a large number of 60-70-year-old users are victims of scam activity," AUSTRAC CEO Brendan Thomas was quoted as saying in the announcement.
According to the regulator's data, there are now at least 1,800 active crypto ATMs, compared with 1,200 in 2024 or 23 in 2019. AUSTRAC estimates that almost 150,000 transactions occur annually, with about AUD $275 million being moved using crypto ATMs, while almost all transactions are cash deposits in order to buy crypto assets.
Crypto ATMs across the world
Last year, the US Federal Trade Commission also warned that crypto ATMs are being used by fraudsters who are using tactics such as government impersonation, business impersonation, and tech support scams to steal their victims’ money. People aged 60 or more were also among the most targeted.
"Scammers claim that depositing cash into these machines will protect your money or fix the fake problem they’ve concocted. They’ve even called BTMs 'safety lockers,'" the commission warned back then, urging people to never withdraw cash in response to an unexpected call or message and to not believe anyone who says you need to use a bitcoin ATM, buy gift cards, or move money to protect it or fix a problem.
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