Cryptocurrency ATMs in Australia Have Grown 16-fold in Two Years
Date: 2024-08-30 Author: Oliver Abernathy Categories: IN WORLD
According to a recent Bloomberg report, Australia is seeing impressive growth in the number of cryptocurrency automated teller machines (ATMs), making it one of the fastest-growing markets for these devices in the world.
The number of crypto ATMs in the country has skyrocketed over the past two years, from 73 to nearly 1,200. The growth has sparked debate about the demand for such services and the potential risks associated with them. Cryptocurrency ATMs allow users to deposit cash to receive digital assets in their wallets or withdraw cash from token sales.
While the US remains the largest market with around 32,000 machines, and Canada is next with around 3,000, Australia has quickly risen to third place.
Expanding with North American Operators: What’s Happening in Australia? Operators claim that these ATMs provide greater financial inclusion by providing easy access to digital currencies, as evidenced by the rapid growth in the number of machines installed. However, this expansion has been controversial. Critics argue that the proliferation of cryptocurrency ATMs increases the risk of money laundering and fraud.
Angela Ang, senior policy adviser at blockchain analysis firm TRM Labs, notes that Australian authorities have identified cryptocurrency ATMs as vulnerable to money laundering.
TRM Labs reports that the cash-to-cryptocurrency industry has processed at least $160 million in illegal transactions worldwide since 2019. Meanwhile, Chainalysis Inc. estimates that around $223 million in illegal digital asset activity will be recorded in Australia alone from 2022 to 2023.
According to a recent report, scammers are increasingly using cryptocurrency ATMs and kiosks in their schemes. They direct victims to deposit cash into these machines, which convert the money into digital currency and allow for quick, untraceable transfers, often to overseas accounts. In one recent case, a victim was scammed out of nearly $5,000 deposited into a Bitcoin ATM, with the scammers demanding gift cards to settle a fictitious debt. Incidents like these are becoming increasingly common, particularly among older people, with more than 2,000 complaints filed in 2023 alone.
Several major Australian banks have also imposed restrictions on transactions with digital asset exchanges due to concerns about fraud.
Notably, the significant growth in the cryptocurrency ATM market in Australia has been driven by the expanding presence of North American providers.
Companies like US-based Bitcoin Depot Inc. are preparing to roll out more than 200 additional kiosks across Australia, pending regulatory approval. Local factors have also contributed to the rise of cryptocurrency ATMs in Australia. The appetite for betting here is carried over to the cryptocurrency market, where speculation in digital coins has attracted significant interest.
The rapid proliferation of cryptocurrency ATMs has caught the attention of Australian regulators, who are trying to balance the need for innovation in digital finance with the fight against illegal activity.
The Australian Transaction Reporting and Analysis Centre (AUSTRAC) requires all digital currency exchange service providers to register with the agency to operate legally in the country.
Meanwhile, the Australian Taxation Office has prioritised tackling technology-related crime, particularly in response to concerns about the use of ATMs for money laundering.
