Australia’s financial intelligence agency (AUSTRAC) has imposed new rules on cryptocurrency ATMs to combat fraud and protect consumers. The agency now caps cash transactions at approximately USD 3,250 per transaction for all crypto ATMs in the country. This move is part of a broader crackdown on financial crime involving crypto kiosks. AUSTRAC cites a rise in fraudulent activity on these ATMs as a key driver behind the new regulations. The limits come alongside stricter compliance requirements for all registered Crypto Transaction Entities (DCEs) operating these machines, including mandatory identity verification, scam warnings on screens, and enhanced transaction monitoring. The agency has also begun imposing penalties on non-compliant operators, with one ATM operator’s license revoked due to failure to report transactions and comply with AML/CTF laws. AUSTRAC is urging similar limits for all cash-for-crypto services across the country. This move follows a surge in crypto ATMs over the past seven years, with Australia now home to over 1,800 machines, making it one of the top markets globally. However, this growth has also raised concerns as many transactions are associated with criminal activities such as romance scams and investment fraud targeting older Australians. The agency’s data shows that these age-specific victims account for a significant share of all transactions by value. To address this issue, AUSTRAC has established a task force to assess crypto ATM providers’ compliance measures and will take action against those failing to meet the new requirements, including deregistration. The agency is taking a proactive approach with its new regulations, which could serve as a model for other countries navigating the challenges of cryptocurrency growth while safeguarding consumers.