Australia’s Crypto ATM Boom: 17-Fold Increase in Two Years Amid Rising Security Concerns

Australia is experiencing a rapid expansion in the number of cryptocurrency ATMs, becoming one of the world’s fastest-growing markets for these kiosks. In just two years, the number of crypto ATMs in the country has surged 17-fold, reaching 1,162 machines, according to data from Coin ATM Radar. This is a significant leap from the 67 machines recorded in August 2022.

As of the end of April, Australia had already surpassed the 1,000-mark for active crypto ATMs, with 160 new machines added since then. Blockchain intelligence firm TRM Labs has described this expansion as “the most significant growth in the cash-to-crypto industry over recent years.”

Australia’s Position in the Global Market

Despite its impressive growth, Australia holds just a 3% share of the global crypto ATM market. The United States remains the dominant player, controlling over 82% of the market with 31,877 ATMs. Canada follows with 3,004 machines, capturing an additional 7.8% of the global market.

The rapid increase in Australia’s crypto ATMs has not gone unnoticed by law enforcement agencies, who are closely monitoring the situation due to concerns about the potential misuse of these machines.

TRM Labs has flagged Australia’s crypto ATMs as a significant “money laundering vulnerability.” In March of the previous year, the Australian Federal Police initiated a multi-agency task force to combat money laundering, noting that some criminals have exploited crypto ATMs to launder illicit funds.

Globally, authorities and regulators have expressed concerns about crypto ATMs’ role in facilitating scams and financial crimes. The kiosks are particularly vulnerable due to their use of cash and the fact that they generally do not require user accounts. Since 2019, the cash-to-crypto industry has processed at least $160 million in illicit transactions, with 1.2% of last year’s volume tied to illegal activities, compared to 0.63% across the broader crypto ecosystem.

Impact of Scams and Fraud

Scams and fraud represent a significant portion of the illicit activity associated with crypto ATMs. In 2023, over $30 million—nearly 80% of the total illicit volume—was linked to scam and fraud-related crypto wallets. Some kiosks have responded by displaying anti-scam warnings or checklists to deter misuse.

Regulators in other countries have taken more aggressive actions against crypto ATMs. For instance, Germany’s financial watchdog seized 13 out of 35 crypto kiosks in a recent crackdown on August 20. Similarly, the UK’s Financial Conduct Authority removed 26 unlicensed crypto ATMs last year, reducing the number of active machines in Britain by 90%.

In summary, while Australia’s crypto ATM market is booming, the rapid growth has heightened concerns about security and regulatory oversight, reflecting broader global apprehensions about the potential for misuse in the cash-to-crypto industry.