Tasmania Cracks Down on Crypto ATMs as Scam Losses Soar to $1.6M – Is Australia’s Crypto Winter Coming?
Tasmania just threw its weight behind Australia’s nationwide crackdown on crypto ATMs—and the timing couldn’t be sharper. With scam losses hitting $1.6 million, regulators are slamming the brakes on unchecked crypto access.
Why the sudden heat? These machines have become a playground for fraudsters, draining wallets faster than a bull market correction. Tasmania’s move mirrors a broader Aussie push to rein in crypto’s wild west—no more anonymous buys, no more quick cash-outs.
But here’s the kicker: while regulators scramble to plug leaks, crypto’s true believers aren’t sweating. ‘Scams happen in every asset class,’ shrugs one trader. ‘Next they’ll blame ATMs for bad stock picks.’
One thing’s clear: Australia’s playing catch-up in a game where the rules change daily. Will tighter controls protect investors—or just push crypto deeper underground? Either way, the machines are cooling off. For now.
Scammers Push Victims to Use Crypto ATMs in Tasmania
Detectives report that scammers often pressure victims into using crypto ATMs after traditional financial institutions flag suspicious transactions.
“Victims are being manipulated, intimidated, and pressured into investing in fake investment and romance scams,” said Detective Sergeant Paul Turner.
He warned that many of these scams involve large sums and can have devastating long-term effects on victims, including financial ruin and dependence on government support.
“If you are asked to deposit cash into a cryptocurrency ATM by someone you’ve never met in person, or the offer comes with a high-pressure deadline or urgent tone, then it is likely a scam,” Turner said.
AUSTRAC has recently introduced new rules and transaction limits for crypto ATM operators, effective June 3, to better fight scams. Crypto also remains a top priority for the agency heading into 2025.
Tasmania’s crypto ATM network has grown rapidly, from just one machine in 2021 to over 20 today. Coin ATM Radar data confirms 24 machines in the state.
Where in the world is #Bitcoin most accessible?
Here are the top countries with the most Bitcoin ATMs:
USA – 30,780
Canada – 3,062
Australia – 1,389
Spain – 276
Poland – 219
Slovenia – 80
#Crypto adoption is on the rise! pic.twitter.com/sleyKOqkc5
Nationwide, Australia ranks third globally for bitcoin and crypto ATMs, trailing only the US and Canada, with nearly 1,900 units, up sharply from 67 a year ago.
Major operators include Localcoin, Coinflip, and Bitcoin Depot.
More Countries Clamp Down on Crypto ATMs
Internationally, authorities are also cracking down on crypto ATM misuse.
Last week, New Zealand banned crypto ATMs and restricted international cash transfers to combat money laundering.
In Australia, AUSTRAC recently introduced stricter rules for crypto ATM operators, including tighter cash limits and monitoring.
Last month, the regulator refused to renew the registration of a local crypto ATM operator, Harro’s Empires. The agency placed operating conditions, including transaction limits, on them.
In the US, Spokane, Washington, has banned crypto ATMs entirely, citing their use in scams targeting vulnerable residents.
Lawmakers in the US Senate are also attempting to tighten laws on a state and local level, with one attempt led by Illinois Senator Dick Durbin.
He has introduced the Crypto ATM Fraud Prevention Act, which WOULD bring in legislative measures designed to protect the public — while attempting to limit inconvenience for law-abiding users.
New users would be prevented from spending more than $2,000 a day at one of these machines, rising to $10,000 in a 14-day period.
