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30/08/24
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Australia’s Crypto ATM Boom: 17-Fold Increase Amid Regulatory Scrutiny
Australia has experienced a remarkable increase in the number of crypto ATMs, which have surged by 17 times over the past two years. Currently, the country boasts 1,162 of these machines, making it the third-largest market globally for crypto ATMs, according to recent figures. This growth is significant, considering the number of active machines was just 67 in August 2022. Since reaching the milestone of over 1,000 units in operation in April, Australia has added an additional 160 ATMs.
However, this rapid expansion has not gone unnoticed by regulatory bodies and law enforcement. The Australian Federal Police, recognizing the potential for misuse, launched a multi-agency task force aimed at tackling money laundering activities connected to crypto ATMs. These kiosks have been flagged as a risk for money laundering, largely because they allow transactions in cash and typically do not require users to have an account.
Globally, concerns are mounting regarding the involvement of crypto ATMs in criminal activities, including scams and money laundering. It has been reported that these machines processed approximately $160 million in illicit transactions since 2019. The share of illicit activity in the cash-to-crypto sector is significantly higher than in the broader cryptocurrency market, highlighting the increased vulnerabilities associated with these machines.
Scams and fraudulent activities have become predominant in the sphere of illicit crypto transactions, with a substantial portion attributed to known scam-related wallets. In an effort to mitigate misuse, some kiosks now feature warnings or checklists to inform users about potential scams.
Regulatory responses to the issues surrounding crypto ATMs are evolving. For instance, in recent weeks, German financial authorities seized 13 ATMs, while the Financial Conduct Authority in the UK removed 26 unlicensed machines last year, significantly reducing the number of active units in that market.
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