Australia is now the country with the third-most cryptocurrency ATMs in the world, thanks to a significant increase in their number.
A recent Bloomberg report showed that Australia is witnessing a remarkable surge in the number of cryptocurrency automatic teller machines (ATMs), making it one of the fastest-growing markets for these kiosks worldwide.
The number of cryptocurrency ATMs in the nation has increased dramatically from just 73 to almost 1,200 in just two years. The demand for these services and their possible risks have been discussed as a result of their growth.
Through the sale of tokens, users can withdraw physical currency from crypto ATMs or deposit cash to receive digital assets in their wallets.
With roughly 32,000 machines, the United States continues to be the largest market, followed by Canada with roughly 3,000, but Australia has quickly risen to third place.
Expansion Fueled by North American Operators: What is Going On In Australia?
The quick expansion of ATMs in the market supports operators’ claims that by making digital currencies easily accessible, these machines promote greater financial inclusion.
But there has been debate over the expansion. Some who oppose the spread of cryptocurrency ATMs claim that there is a greater chance of fraud and money laundering.
According to TRM Labs’ senior policy adviser, Angela Ang, Australian authorities have recognized cryptocurrency ATMs as a potential source of money laundering.
According to TRM Labs, since 2019, the cash-to-crypto market has handled at least $160 million in nefarious transactions worldwide. Meanwhile, illegal digital asset activity is estimated by Chainalysis Inc. to have totaled $223 million in Australia alone between 2022 and 2023.
A recent report claims that scammers are using cryptocurrency ATMs and kiosks more frequently in their operations. The machines they direct victims to insert cash into are designed to transform it into digital currency, enabling swift and anonymous transfers, frequently to accounts located abroad.
⛔ Scammers are increasingly incorporating cryptocurrency ATMs and kiosks into their fraudulent schemes.#Scam #Cryptohttps://t.co/Ra2M8hhLiX
— Cryptonews.com (@cryptonews) August 27, 2024
A recent case also revealed that con artists demanded gift cards to pay off a fictitious debt after tricking a victim into depositing almost $5,000 into a Bitcoin ATM. These kinds of incidents are becoming more frequent, particularly with older people; in 2023 alone, over 2,000 complaints were made about them.
A number of significant Australian banks have also placed limitations on using digital asset exchanges for transactions because they are worried about scams.
Notably, North American providers growing their international presence have been a major factor in Australia’s cryptocurrency ATM market growth.
Awaiting regulatory approval, businesses such as the U.S.-based Bitcoin Depot Inc. are getting ready to set up more than 200 additional kiosks throughout Australia.
The growth of cryptocurrency ATMs in Australia has also been influenced by regional variables. This propensity for gambling is evident in the cryptocurrency market, where there has been a lot of interest in digital coin speculation.
The Future of Crypto ATMs in Australia And Globally
Australian regulators are keeping an eye on the rapidly spreading crypto ATMs, striking a balance between the need for innovation in digital finance and worries about illicit activity.
For any digital currency exchange provider to legally operate in Australia, they must register with the Australian Transaction Reports and Analysis Centre (AUSTRAC).
In the meantime, the Australian Taxation Office has made it a priority to combat financial crime enabled by technology, especially in light of worries about the use of ATMs for money laundering.
According to a recent report, Habibur Rahman has been charged by the UK with operating unregistered crypto ATMs and laundering £300,000 ($395,000), marking the first prosecution pertaining to crypto ATM operations.
This case comes after several ATMs were taken during a police raid at an electronics store in 2023. Crypto ATMs were outlawed by the Financial Conduct Authority (FCA) in 2022, ending their existence in the nation.
Rahman’s case is a part of a larger global initiative to regulate the cash-to-crypto market, which since 2019 has handled at least $160 million in illicit transactions.