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Australia has experienced a dramatic increase in the number of cryptocurrency ATMs, with new installations rising 17-fold over the past two years. This growth has positioned Australia as the third-largest market globally for crypto ATMs, with 1,162 machines now operational, a substantial increase from 67 machines in August 2022. Data from Coin ATM Radar indicates that 160 ATMs have been added since late April, when the country surpassed the 1,000-machine milestone.
Despite this rapid expansion, concerns have been raised about the misuse of these machines. {Blockchain} intelligence firm TRM Labs highlighted in an August 28 report that this expansion represents the most significant development in the cash-to-crypto sector in recent years. However, TRM Labs has also pointed out that these ATMs present a vulnerability for money laundering and other illicit activities.
Australia's crypto ATM market, although robust, accounts for only 3% of the global total. The United States remains the dominant player, with over 31,000 machines, representing more than 80% of the global market, followed by Canada with approximately 3,000 machines.
The proliferation of crypto ATMs has drawn the attention of law enforcement agencies. The Australian Federal Police, in March of the previous year, established a multi-agency task force to address money laundering concerns related to crypto ATMs. Some criminals have reportedly used these machines to launder illicit funds.
TRM Labs' reveals that the cash-to-crypto sector, heavily influenced by crypto ATMs, has processed at least $160 million in illicit transactions since 2019. In 2023, scams and fraud constituted a significant portion of these illicit transactions, with over $30 million—nearly 80% of the total—linked to scam and fraud-related wallets.
In response to these concerns, some crypto ATMs now display warnings to help users avoid scams. Regulatory actions have also been implemented; for instance, Germany's financial watchdog recently seized 13 out of 35 crypto ATMs, and the UK's Financial Conduct Authority removed 26 unlicensed machines last year, reducing the number of active ATMs in Britain by 90%.
