Crypto ATMs in Australia have risen by 17 times over the past two years. It is now seen as one of the world’s fastest-growing markets for the kiosks.
However, there are deep concerns over their use for money laundering.
The rapid surge in crypto ATMs has brought the eyes of law enforcement with it. In March 2023, the Australian Federal Police launched a multi-agency money laundering task force. It noted at the time that many criminals used crypto ATMs to launder money, leaving little to no trace.
RELATED: Australians Lost $122 Million To Crypto Scams In Past Year
Australia Rises To Third In Number Of Crypto ATMs, Behind USA And Canada
The Oceania country is now the world’s third-largest market for crypto ATMs. Data from Coin ATM Radar shows 1168 active crypto ATM machines in Australia. This number is up from 67 in August 2022.
Even with its rapid growth in the sector, Australia has just a 3% share of the global market. The USA is far away in the lead, with over 82% (31,877) of the worlds crypto ATMs, followed by Canada’s 7.8% share (3004).
$160 Million In Illicit Transactions Carried Out On Crypto ATMs Worldwide
Crypto ATMs surge 17X in Australia amid concerns over use by bad actors
The number of new crypto ATMs in Australia has surged 17 times over the past two years, but TRM Labs has warned about their use in scams, fraud, and crime.#ATM #Crypto pic.twitter.com/e3nrKMQPQV
— LB 🆕 (@lib_coin5) August 30, 2024
Blockchain intelligence firm, TRM Labs, produced a report on Wednesday, 28 August 2024, titled ‘Rate of Illicit Activity at Crypto ATMs is Double That of Overall Crypto Industry’. In it, they said that the authorities and regulators around the world have concerns regarding the role of the kiosks in scams and crimes.
It went on to say that the cash-to-crypto industry is “dominated by crypto ATMs.”
Analysis carried out by the firm found that since 2019, the sector has processed at least $160 million worth of unlawful transactions. “Last year, illicit volumes in the cash-to-crypto industry stood at 1.2% of total volume, double the 0.63% for the overall crypto ecosystem,” it added.
EXPLORE: Soccer Superstar Kylian Mbappe Launched A Meme Coin That Hit $465 Million Market Cap – Or Did He?
The analysis from TRM Labs also found that scams and fraud accounted for the majority of illicit volumes in 2023. Reportedly, over $30 million (nearly 80% of the total illicit volume), went to known scam and fraud-linked crypto wallets.
Some regulators have already begun cracking down on the kiosks. Just last week, Germany’s financial watchdog seized 13 from 35 locations around the country. The UK began its purge last year. In 2023, the Financial Conduct Authority (FCA) pulled 26 unlicensed crypto ATMs.
In Germany 🇩🇪 you face up to five years in prison for running a crypto ATM.
Just because the government wants to protect their citizens from evil Bitcoin & Co.! pic.twitter.com/0nJacrni60
— CR1337 (@cryptonator1337) August 21, 2024
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
