Crypto ATMs Multiply Across Australia, But So Do the Risks

Key Takeaways

• Crypto ATM popularity surge in Australia amid regulatory woes.
• Crypto ATM grew from 73 in 2022 to over 1200 in 2024.
• The growing popularity of crypto ATMs has become a headache for authorities due to their link to illicit activities.

Crypto ATMs are surging in popularity, with Australia emerging as a hotspot for Bitcoin ATMs.

The country has witnessed a staggering 16-fold increase in the number of machines over the past two years, according to Coin ATM Radar data , which shows the total count swelling to 1,200 from a mere 73 in 2020.

While the global pace of Bitcoin ATM installations has been steady, with one new machine added every two days, the trend has sparked a debate.

On one hand, kiosk operators cite the growth as evidence of rising demand and mainstream adoption; on the other, skeptics sound alarms about the risks of illicit activities and question whether the surge is driven by genuine interest or speculation.

Australia’s Bitcoin ATM Rise Has a Gambling Connection

Australia’s Bitcoin ATM growth story has puzzled crypto pundits.

In just two years, the country has vaulted from tenth to third place globally, with a wave of new operators awaiting regulatory approval to set up shop.

The region has become the favorite destination for North American crypto ATM operators. 

CoinFlip, a Chicago-based BTC ATM operator, reported a fourfold increase in the value of digital-asset transactions through its crypto exchange machines in Australia over the past year.

Similarly, another United States-based Bitcoin ATM operator, Bitcoin Depot, said over 200 crypto ATMs are awaiting regulatory approval in Australia.

The US still dominates the Bitcoin ATM landscape, with over 32,000 machines installed nationwide, followed by Canada with 3,000.

However, Australia’s rapid ascent has propelled it to third place, according to industry data.

A Bloomberg report  linked the recent boom in Bitcoin ATMs in Australia to the country’s gambling culture.

According to data shared by the country’s health and welfare department, the country’s per capita losses from legal gambling are among the highest globally.

Another major reason for the surge in Bitcoin ATMs is the ongoing regulatory restrictions on banks.

Australian banks are not allowed to partner with digital exchanges, making it difficult for customers to liquidate their funds and forcing them to look for alternatives.

Bitcoin ATM Growth Raises Concerns Among Law Enforcement

Bitcoin ATMs work in two ways: First, users deposit cash into the ATMs and receive a crypto of their choice in their wallet. Second, a few ATMs allow users to withdraw money against the crypto they hold.

These crypto ATMs were considered critical tools for financial inclusion, allowing the common public to buy and exchange crypto like fiat currencies.

However, these ATMs have become a growing concern for law enforcement agencies due to their links to illicit money laundering activities.

Australian authorities have identified  crypto ATMs as a money laundering tool.

In 2023, The Australian Federal Police outlined how these machines are used to launder illicit funds. The Police said bad actors use these machines to exchange crypto against ‘dirty’ cash and send the digital asset to crypto mixer tools.

The crypto mixer tool often mixes illicit crypto transactions with regular ones and moves them multiple times to hide the origin of the funds.

According to data  shared by the crypto analytic group TRM Labs, crypto ATMs have moved over $160 million in illicit transactions since 2019.

Although crypto ATMs account for a tiny fraction of the crypto transactions worldwide, they are actively used by bad actors.

In 2023, 79% of all cash-to-crypto illicit volume, estimated to be worth  $30 million, was linked to known scams and bad actors.

The risks associated with Bitcoin ATMs have forced countries like Singapore and the United Kingdom to ban their use. Countries like Germany have a rigorous regulatory approval policy around crypto exchange machines.

The German government recently carried out a nationwide crackdown and confiscated 13 illegally operating Bitcoin ATMs.

About the Author

Prashant Jha

Prashant Jha is a crypto-journalist focused on the US and UK markets, his interests lie in blockchain technology and crypto adoption across emerging economies.

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