Crypto ATM Scams Surge in Australia

• New Regulations: AUSTRAC imposes $5,000 transaction limits, enhanced customer due diligence, and mandatory scam warnings on crypto ATMs.
• Harro’s Empires Sanctioned: The small South Australian crypto ATM operator had its registration revoked for non-compliance.
• Scam Statistics: Australians lost $3 million to crypto ATM scams in the past year, with 72% of victims aged over 50.
• Common Scams: Romance, investment, and extortion scams are the most prevalent.
• Crypto ATM Growth: Australia now has over 1,800 crypto ATMs, ranking third globally.

In a significant move to protect consumers and combat financial crime, Australia’s financial crime regulator, AUSTRAC, has introduced sweeping new controls on cryptocurrency ATMs (CATMs) to tackle their increasing use in scams, fraud, and money laundering. As decentralized finance (DeFi) continues to grow, offering innovative ways to buy and sell digital currencies like Bitcoin (BTC), Ethereum (ETH), and Dogecoin (DOGE), these machines have become a hotspot for criminal activity, prompting urgent regulatory action.

On June 2, 2025, AUSTRAC announced stringent measures, including a $5,000 transaction limit on deposits and withdrawals, enhanced customer due diligence, and mandatory scam warnings at crypto ATMs. The crackdown follows alarming findings that Australians lost $3 million to CATM-linked scams over the past 12 months, with 72% of victims being over the age of 50. The most common scams include romance fraud, fake investment schemes, and extortion, often targeting vulnerable individuals.

As part of this enforcement, AUSTRAC revoked the registration of Harro’s Empires, a small South Australian crypto ATM operator, for failing to comply with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations. This action sends a clear message to the industry: compliance is non-negotiable.

The Scale of the Problem

Australia has become a global leader in crypto ATM adoption, with over 1,800 machines nationwide as of early 2025, making it the third-highest country globally for CATM density. These kiosks allow users to buy or sell cryptocurrencies using cash or cards, often with minimal identity verification, which makes them a prime target for criminals. The rapid growth of these machines has outpaced regulation, creating fertile ground for illicit activities.

Table: Crypto ATM Growth in Australia

AUSTRAC CEO Brendan Thomas emphasized the urgency of the situation, stating, “We want to ensure crypto ATM providers have robust practices to minimise the risk that their machines can be used to launder dirty money or to scam and defraud innocent people.” The regulator’s taskforce, established in December 2024, has uncovered worrying trends and indicators of suspicious activity, including transactions linked to scams and fraud.

Regulatory Measures and Industry Impact

Under Australia’s Anti-Money Laundering and Counter-Terrorism Financing Act 2006, crypto ATM operators must register with AUSTRAC, conduct Know Your Customer (KYC) checks, monitor transactions, and report suspicious activities or cash transactions exceeding $10,000. The new $5,000 transaction limit aims to deter large-scale money laundering, while mandatory scam warnings at ATMs are designed to educate users about the risks.

The crackdown extends beyond active operators. AUSTRAC is also targeting inactive crypto exchanges, warning them to deregister or face cancellation. Firms like FTX Express and AccE Australia have already lost their registrations due to inactivity or insolvency, as part of a broader effort to close regulatory loopholes that criminals might exploit.

Public Sentiment and DeFi Implications

The rise in CATM-related scams has sparked concern among Australians, with many sharing their frustrations online. A recent post on X highlighted the issue: “Crypto ATMs increasingly used for scams and money laundering. Elderly particularly targeted. AUSTRAC cracks down” .

For the DeFi community, this crackdown underscores the double-edged nature of decentralized finance. While CATMs provide easy access to cryptocurrencies, fostering financial inclusion, they also expose users to significant risks if proper safeguards aren’t in place. The new regulations aim to strike a balance, ensuring that the benefits of DeFi—such as fast, intermediary-free transactions—aren’t overshadowed by criminal misuse.

Looking Ahead

AUSTRAC’s actions are part of a global trend to tighten oversight of crypto infrastructure. With new AML/CTF laws set to take effect in March 2026, applying to a broader range of virtual asset service providers, the industry faces a pivotal moment. For everyday Australians, these measures offer hope for safer interactions with DeFi, but they also serve as a reminder: in the world of crypto, convenience often comes with a catch.