Key Updates:

• AUSTRAC has enforced a $5,000 limit on cash deposits and withdrawals at crypto ATMs. Operators are required to strengthen customer due diligence, include scam warnings, and monitor transactions, according to CEO Brendan Thomas in a statement on Monday.

• This decision comes in response to data indicating that the ATMs were involved in fraud-related activities and that scammers were specifically targeting older adults.

Important Insights:

Australia’s anti-money laundering body, AUSTRAC, is ramping up efforts against crypto ATM providers amid rising scams directed at the elderly population. The authority discovered that individuals over 50 years of age represent 72% of all transactions conducted through these ATMs, with persons aged 60-70 accounting for 29%.

Thomas expressed concern about the disproportionate number of older adults using cash to purchase cryptocurrency, with many of them being victims of scams. Australia leads the Asia Pacific region with the highest number of crypto ATMs, with approximately 1,600 machines currently in operation – a significant rise from just 23 back in 2019. An estimated 150,000 transactions occur each year, amounting to $275 million mainly spent on Bitcoin, Tether’s USDT, and Ether.

Additionally, AUSTRAC has denied the renewal request of Harro’s Empires, citing potential risks associated with its crypto ATMs. The regulator has been alerting operators to ensure compliance with anti-money laundering measures.