In a bid to curb the exploitation of cryptocurrency ATMs by scammers, particularly those targeting the elderly, Australia's financial regulator, AUSTRAC, has implemented stricter regulations for operators. These measures include a $5,000 cap on cash deposits and withdrawals, enhanced customer verification, display of scam warnings, and transaction monitoring. This decision follows the discovery that a substantial portion of crypto ATM users are older adults, with 72% of transactions attributed to individuals over 50 and 29% to those between 60 and 70 years old.
AUSTRAC's CEO, Brendan Thomas, expressed concern over the demographic's significant representation in crypto transactions, citing evidence that a considerable number of 60-70 year olds have fallen victim to scams. With over 1,600 crypto ATMs currently in operation across Australia, a significant increase from just 23 in 2019, the regulator is taking proactive steps to mitigate risks.
Approximately 150,000 transactions are conducted annually, amounting to $275 million, primarily for the purchase of major cryptocurrencies like bitcoin, USDT, and ether. Additionally, AUSTRAC has refused to renew the registration of a provider due to vulnerabilities in its ATMs and is urging all crypto ATM operators to register and implement appropriate anti-money laundering measures.