Bitcoin ATMs in Australia have grown 16-fold in the last two years. (Photo by Artur Widak/NurPhoto via Getty Images)
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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.
Bitcoin ATMs by country. Source: Coin ATM Radar.
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.
Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
Beyond his professional pursuits, Prashant is an avid music enthusiast, often exploring diverse genres to unwind. A sports lover, he has a particular passion for cricket and frequently engages in discussions about the game. His multifaceted interests and sharp journalistic instincts make him a valuable contributor to CCN, where he continues shaping the crypto landscape's narrative.
