Australia’s monetary intelligence company Austrac introduced a sequence of latest rules on cryptocurrency ATMs (often called CATMS) throughout Australia on June 3, 2025. The brand new guidelines restrict every money transaction at CATM to a most of $5,000. CATM operators also needs to implement enhanced buyer due diligence procedures, present noticeable warnings about potential fraud, and implement a extra stringent transaction monitoring system. The measure is designed to handle the latest surge in fraud and fraudulent actions, together with cryptocurrency ATMs.
In keeping with Austrac, Australia at the moment hosts practically 1,820 cryptocurrency ATMs, making it the third largest market on this planet. These machines are normally present in comfort shops, fuel stations, supermarkets and buying centres, and supply the flexibility for customers to transform money to a wide range of cryptocurrencies, mostly Bitcoin. Over the previous two years, the variety of CATMs put in in Australia has grown quickly from just some dozen models in 2019 to their present complete.
Between mid-2024 and early 2025, regulation enforcement businesses recorded losses of over $3.1 million in fraud involving cryptocurrency ATM transactions. Scammers normally persuade the sufferer (usually through unsolicited calls or on-line messages) attend close by CATMs, deposit money in change for cryptocurrency, and are transferred to the scammer’s digital pockets. When money is transformed into cryptocurrency and despatched, there may be little restoration in funds because of the pseudonymity of most digital forex networks.
Victims of those frauds tended to be in age teams. Police knowledge present that people aged 60-70 years previous account for a big proportion of their complete transaction worth at CATMs over the 9 months main as much as April 2025. Particularly, over 50 prospects totaled in worth regardless of a small share of the general cryptocurrency consumer base for two-thirds of complete transaction quantity. Authorities be aware that fraudsters usually goal older Australians by spoofing authorities officers, monetary establishment representatives or technical help brokers and urging them to switch funds by means of CATMs.
Underneath the brand new Austrac phrases, CATM operators should implement a strict $5,000 cap on every money deposit or withdrawal transaction. Any try to deposit or withdraw greater than $5,000 in a single transaction shall be mechanically denied by the ATM. This measure goals to cut back the chance of large-scale fraud-driven transfers and restrict using CATMs for cash laundering functions.
Along with transaction limitations, operators should implement an enhanced buyer due diligence (CDD) protocol. These protocols require CATM operators to confirm the ID of the client who will create the transaction close to the A$5,000 threshold. Verification contains requesting and checking government-issued identification, cross-reference buyer particulars with sanctions and watch lists, and recording transaction knowledge in actual time. Operators should additionally keep transaction data for the minimal interval specified below Cash Laundering and Counterterrorism Financing (AML/CTF) rules.
All CATM areas ought to show clear warning notifications advising customers of widespread cryptocurrency scams. These notices ought to embrace steerage to confirm the legitimacy of the person or group requesting the switch of cryptocurrency, and encourage customers to request impartial verification earlier than continuing with the transaction. Warning notifications needs to be positioned prominently above or close to the ATM interface and at consumer directions seen to prospects.
Moreover, operators have to deploy a extra strong transaction monitoring system that may detect suspicious patterns. Examples of such patterns embrace transactions which can be repeated just below the $5,000 restrict, speedy successive transactions from the identical account or gadget, and transactions associated to wallets or addresses identified to be linked to confirmed fraudulent actions. If the transaction is flagged as suspicious, the operator should submit a report back to Austrac and notify native regulation enforcement if needed.
Austrac additionally signifies that CATM operators making an attempt to register a brand new machine or replace an present registration ought to reveal full compliance with the brand new guidelines. In a single confirmed case, Austrac refused to resume the CATM operator’s registration as a result of the operator was unable to implement the suitable AML/CTF measurements. Operators discovered to be violating new phrases could face penalties starting from monetary fines to suspension or cancellation of registration, successfully banning the operation of Australian CATMs.
The Australian Federal Police (AFP) supplies statistics that spotlight the scale of the difficulty. AFP data present that over 600 fraud-related instances have been linked to CATM from July 2024 to April 2025, leading to a complete of $3.1 million losses reported. Most of those instances stay below lively investigation. AFP emphasised that when funds are transformed into cryptocurrency and despatched through CATM, it complicates restoration efforts and prosecution, and makes it tough to observe swimsuit.
In response to the rising pattern in fraud, AFP officers level out that scammers are more and more utilizing subtle scripts and claiming to signify respected organizations. Victims are sometimes informed that they’re owing cash from the tax workplace, have a warrant for an arrest, or need to pay a false safety deposit to resolve fictitious technical points. In lots of instances, victims transfer throughout totally different suburbs, typically throughout totally different suburbs, to a number of CATM areas earlier than depositing their money. AFP recommends that requests for funds in cryptocurrency needs to be handled instantly with suspicion, particularly if the request follows an unsolicited name or message.
Cryptocurrency ATM operators have expressed concern concerning the quick influence of the $5,000 buying and selling restrict. Some operators have identified that authorized customers, resembling small enterprise homeowners who wish to switch giant portions of money or cryptocurrency buyers, could uncover that restrictions are restricted. With out a secondary mechanism to separate giant transactions into a number of authorized transfers, customers might want to go to a number of machines or return to consecutive days.
Nonetheless, some operators have begun deploying software program updates to implement transaction restrictions and related buyer verification processes. These updates embrace modules that freeze transactions recognized as excessive danger and mechanically difficulty an on-screen immediate to inquire the consumer to invoke buyer assist in the event that they consider they’re unfairly flagged. The operator additionally started printing and pasting required fraud warning notifications for all present machines forward of compliance deadlines.
In a world context, CATM counts for round 1,820 machines in Australia are positioned behind the US and Canada, however far forward of most different international locations. In early 2025, the US hosted over 31,000 crypto ATMs, whereas Canada had round 3,000 folks. Europe and Asia present extra modest numbers, with the vast majority of CATMs concentrated in city areas of Germany, the UK and Singapore. Authorities in a number of jurisdictions level to the speedy adoption of CATM as a mannequin that permits Australia to open a pathway for unlawful finance with out correct safety measures.
The rollout of Austrak’s new CATM rules is according to broader efforts by Australian regulators to strengthen surveillance within the digital asset sector. Over the previous yr, Austrac has issued cryptocurrency change pointers to boost AML/CTF controls, together with common danger assessments, employees coaching and the appointment of compliance personnel. The brand new CATM guidelines signify the newest phases of the evolving regulatory framework aimed toward guaranteeing that digital forex companies function inside established monetary integrity requirements.
In parallel with the regulatory adjustments, each Austrac and AFP have launched public consciousness initiatives focusing on Australians. The marketing campaign contains informational materials distributed by means of superior centres, neighborhood teams, and on-line channels incessantly visited by retirees. The fabric explains how cryptocurrency fraud usually works, outlines steps to confirm professional monetary requests, and supplies contact particulars to report suspicious fraud. Officers concerned within the marketing campaign emphasize that training is a key part of the general technique to cut back fraud-related losses.
Austrac has proven that it’ll conduct common opinions to evaluate the effectiveness of the A$5,000 buying and selling restrict and associated measures. If knowledge from ongoing investigations and transaction reviews means that new guidelines are inadequate to curb unlawful actions, Austrac could take into account additional restrictions, resembling decrease transaction caps and widening buyer verification necessities. On the similar time, regulators acknowledge the significance of sustaining shopper entry to digital belongings, particularly for people who depend on CATMS as a method of entry into the cryptocurrency market.
Trade stakeholders count on compliance prices to rise as operators spend money on the monitoring software program, employees coaching and signage they want below new rules. Some CATM producers have already begun growing software program updates that embrace built-in AML/CTF options, resembling real-time danger scoring and computerized reporting interfaces. These enhancements are anticipated to unfold to a wider market over the approaching months.
