The number of crypto ATMs in Australia has skyrocketed, increasing 17-fold in the past two years. Despite this growth making Australia one of the world’s fastest-expanding markets for these machines, concerns over their use in illegal activities are mounting.
Australia’s Rapid Crypto ATM Expansion
Australia now ranks as the third-largest market for crypto ATMs globally, boasting 1,162 machines, a dramatic rise from just 67 in August 2022. The surge continued into 2024, with 160 new ATMs installed since April alone, according to data from Coin ATM Radar. This expansion has significantly bolstered Australia’s position in the global market, although it still lags behind the United States, which commands over 82% of the market with 31,877 ATMs, followed by Canada’s 3,004 machines.
Blockchain intelligence firm TRM Labs highlighted this growth as “the most significant expansion of the cash-to-crypto industry over the last few years.” However, with rapid growth comes increased scrutiny, especially from law enforcement.
Concerns Over Use in Illicit Activities
Australia’s law enforcement agencies have raised alarms about the potential misuse of crypto ATMs. In March 2023, the Australian Federal Police launched a multi-agency task force targeting money laundering, noting that some criminals exploit these machines to launder money. TRM Labs echoed these concerns in an August 28 report, identifying crypto ATMs as a “money laundering vulnerability” due to their cash-based transactions and often minimal identification requirements.
Globally, crypto ATMs have processed at least $160 million in illicit transactions since 2019, according to TRM Labs. The firm’s analysis revealed that the cash-to-crypto sector had an illicit transaction volume of 1.2% in 2022, double the overall crypto ecosystem’s rate of 0.63%. Scams and fraud constituted the majority of these illicit activities, with over $30 million linked to scam-related crypto wallets in 2023 alone.
Regulatory Crackdowns and Preventative Measures
To combat these issues, some crypto ATM operators have implemented anti-scam warnings and checklists on their machines, aiming to prevent users from falling victim to fraud. However, regulatory bodies in other countries have taken more direct action. Germany’s financial watchdog recently seized 13 unlicensed crypto ATMs from 35 locations, and last year, the United Kingdom’s Financial Conduct Authority removed 26 unlicensed machines, reducing the number of active crypto ATMs in Britain by 90%.
As Australia’s crypto ATM market continues to expand, it is likely that both regulatory scrutiny and preventative measures will intensify to curb the machines’ use in illicit activities.
