- Rapid Growth of Crypto ATMs in Australia
- Concerns About Money Laundering Through Crypto ATMs
- Regulation and Security Measures
According to the latest data from Coin ATM Radar, Australia now ranks as the third largest market for crypto ATMs globally. The US stands first with 32,000 machines, followed by Canada with 3,000.
Rapid Growth of Crypto ATMs in Australia
Australia witnessed a surge from just 73 machines two years ago to its current number of almost 1,200. US-based Bitcoin Depot Inc.’s Chief Executive Officer Brandon Mintz disclosed to Bloomberg that the country has over 200 kiosks waiting for the green flag for installation. Operators cited that the ease of access to crypto and the conversion to fiat have been key factors in their popularity.
Concerns About Money Laundering Through Crypto ATMs
Even though the rise in crypto ATM installation shows greater adoption for cryptocurrencies in Australia, it has raised red flags from regulatory bodies regarding the potential misuse of these machines. These concerns include the risks of money laundering, facilitation of scams, and the challenge of tracing the source of funds. Data from blockchain intelligence firm TRM Labs shows that crypto ATMs have processed close to $160 million in illicit funds since 2019.
Regulation and Security Measures
The Australian Transaction Reports and Analysis Centre (AUSTRAC) mandates all crypto exchange providers to register and comply with anti-money laundering regulations. Local banks have also imposed restrictions on crypto exchange-linked transactions, including National Australia Bank Ltd., Australia & New Zealand Banking Group Ltd., Commonwealth Bank of Australia, and Westpac Banking Corp. These measures drive crypto users to look for alternative ways to cash out their cryptocurrencies, while regulators keep these actions under surveillance to curb money laundering and other illicit transactions.
Australia has become a key player in the crypto ATM market, illustrating growing interest in digital currencies. Meanwhile, regulators and banks are implementing security measures to prevent illegal activities.
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