Australia’s anti-money laundering authority has initiated strict new rules for crypto ATM providers following rising concerns about scam-related transactions, especially involving the elderly.
AUSTRAC Responds to Alarming Data Trends
AUSTRAC, Australia’s financial crime regulator, has introduced a $5,000 limit on crypto ATM cash deposits and withdrawals. The move comes after it discovered that 72% of all crypto ATM transactions were made by users aged 50 and above, a demographic shown to be particularly vulnerable to scams.
The new policy requires ATM operators to implement enhanced due diligence, including:
- Mandatory scam warnings displayed at terminals
- Ongoing transaction monitoring
- Improved customer verification protocols
This response is part of a broader effort to reduce financial exploitation targeting older Australians, many of whom have unknowingly fallen victim to crypto-related fraud.
Scammers Targeting a Growing Elderly User Base
AUSTRAC’s data, sourced from nine major crypto ATM providers, showed that people aged 60 to 70 made up nearly 30% of users, a troubling indicator that scam tactics are effectively targeting older populations.
“It is a huge concern that this age group is over-represented in cash-based crypto purchases, many of which are linked to fraudulent activity,” said AUSTRAC leadership. The report confirmed that scammers often coerce elderly individuals into withdrawing cash and converting it to crypto using ATMs, making funds harder to trace or recover.
Crypto ATM Usage Skyrockets Across Australia
Australia currently leads the Asia-Pacific region in crypto ATM adoption, with over 1,600 machines in operation, up from just 23 in 2019. These terminals process an estimated 150,000 transactions annually, facilitating $275 million in crypto purchases, primarily in Bitcoin (BTC), Tether (USDT), and Ethereum (ETH).
Despite the popularity of these services, AUSTRAC has warned that increased accessibility must be balanced with robust regulatory oversight.
One operator’s registration was recently denied due to findings that its ATMs posed a high risk of misuse, further emphasizing AUSTRAC’s commitment to preventing fraud.
A Warning for Global Crypto ATM Operators
As crypto ATM usage grows globally, Australia’s regulatory response may serve as a model for other nations. With older users becoming primary targets, protections must evolve to match rising threats.
