Australia Tightens Crypto ATM Regulations Amid Fraud Surge

Australia’s financial crime watchdog AUSTRAC has imposed stringent new rules on cryptocurrency ATM operators, citing a dramatic rise in scam activity. The regulator declined to renew the license of Harro’s Empires, a local operator, while implementing strict transaction limits and enhanced compliance measures.

Effective immediately, crypto ATMs face a A$5,000 ($3,233) cap on cash deposits and withdrawals. Operators must now display scam warnings, conduct rigorous customer verification, and implement robust transaction monitoring systems. "These measures are necessary to establish minimum standards and prevent criminal exploitation of crypto ATMs," AUSTRAC stated.

The crackdown comes as Australia’s crypto ATM network exploded from just 23 machines in 2019 to over 1,800 today - a 15-fold increase in two years. Sydney hosts the highest concentration of devices, processing an estimated 150,000 transactions annually.