Australia Tightens Regulations on Cryptocurrency ATMs Amid Senior Abuse Concerns

In response to alarming trends in the use of cryptocurrency ATMs, Australian authorities have implemented stricter regulations aimed at curbing potential financial crimes. These ATMs, which facilitate the purchase of digital currencies like Bitcoin, are reportedly being heavily utilized by senior citizens, many of whom have fallen victim to scams.

The Australian Transaction Reports and Analysis Centre (AUSTRAC) has introduced new guidelines that limit transactions at these ATMs to a maximum of 5,000 Australian dollars per withdrawal or deposit. Additionally, there will be increased scrutiny on transactions and mandatory fraud alerts for users. In a significant enforcement action, one provider has been completely banned from operating.

The recent measures come as part of a broader analysis by a dedicated task force investigating fraud and illicit activities associated with cryptocurrency ATMs. According to AUSTRAC, data collected from nine different ATM operators revealed a concerning demographic trend: individuals aged between 60 and 70 make up a significant portion of users. In fact, 29% of all transactions at these machines are conducted by seniors, while those over 50 account for 72% of the total amounts deposited.

There has been a marked increase in the number of cryptocurrency ATMs across Australia, skyrocketing from just 23 in 2019 to approximately 1,200 by 2024. These machines have facilitated nearly 150,000 transactions annually, with 99% of them being purchases of cryptocurrencies, particularly Bitcoin, Tether, and Ethereum. The total volume of transactions conducted via these ATMs has reached about 275 million Australian dollars.

While AUSTRAC recognizes that these ATMs can provide a convenient investment avenue for individuals who understand the risks associated with cryptocurrencies, officials caution that many users, particularly older adults, may be unaware of the potential dangers. Brendan Thomas, the head of AUSTRAC, emphasizes that once funds are sent through these machines, recovering them becomes exceedingly difficult for law enforcement.

In Germany, cryptocurrency ATMs exist as well, operated by companies such as Kurant, which have placed machines in various retail locations, including Saturn and Media Markt. However, due to existing legal restrictions, these machines can only be used for purchasing cryptocurrencies, with no cash withdrawals allowed. Observations from Australia suggest that consumer interest in such ATMs may be limited. The North Rhine-Westphalia Consumer Centre warns that using these machines can be complicated, requiring an account with the provider and potentially incurring fees that make cryptocurrencies more expensive compared to reputable online platforms. They advise consumers to invest only what they can afford to lose.