Australia’s financial crimes agency placed curbs on cryptocurrency automatic teller machines as the surging number of kiosks increasingly attract fraudsters and scammers.
The Australian Transaction Reports and Analysis Centre, known as Austrac, placed a A$5,000 ($4,169.18) limit on cash deposits and withdrawals as part of new measures to safeguard consumers, according to a statement Tuesday. It’s also refused to renew the registration of one crypto ATM provider.
Austrac “has uncovered disturbing trends which have confirmed that cryptocurrency ATMs are being used for scam/fraud-related transactions”, CEO Brendan Thomas said in the statement. It’s also introduced “enhanced customer due diligence obligations, mandatory scam warnings, and requirements for more robust transaction monitoring”.
Crypto ATMs have boomed in Australia over the past several years. There are now more than 1,800 machines in the country compared to just 23 in 2019, according to Austrac data. Customers aged 50 and older accounted for almost 72% of all crypto ATM transactions by value, with those between 60 and 70 representing 29%.
Austrac warned late last year that cryptocurrencies posed a heightened criminal risk. The agency said Tuesday it also expects digital currency exchanges to consider imposing similar limits to those announced, if they accept cash for crypto transactions.
“I would warn anybody who is asked to use one of these machines to send funds to someone to stop and think twice,” Thomas said.
