The number of cryptocurrency ATMs in Australia has increased 17-fold in two years to 1,162, becoming the third-largest market globally and raising concerns about money laundering risks.
Australia is seeing an explosion in the number of cryptocurrency ATMs, with a staggering 17-fold growth over the past two years. According to data from Coin ATM Radar, there are now 1,162 cryptocurrency ATMs in Australia, up from a modest 67 in August 2022.
The strong growth has made Australia the third largest market for cryptocurrency ATMs in the world, behind only the US and Canada, demonstrating the appeal of cryptocurrencies in this country and the rapid development of infrastructure supporting transactions.
Cryptocurrency ATM installations in Australia have nearly doubled in the past 12 months. Source: Coin ATM Radar
However, the boom has also come with concerns about the potential for cryptocurrency ATMs to be used for illegal activities, especially money laundering. TRM Labs, a blockchain intelligence company, said the increase in the number of cryptocurrency ATMs in Australia is the most significant expansion of the cash-to-crypto industry in recent years.
The Australian Federal Police (AFP) has warned that cryptocurrency ATMs could be used by criminals to launder money. In March 2022, the AFP established an anti-money laundering task force, highlighting that some criminals were using cryptocurrency ATMs to launder illegal money.
TRM Labs also said that authorities and regulators around the world are concerned about the role of cryptocurrency ATMs in fraud and crime. According to TRM Labs' analysis, the cash-to-crypto industry has processed at least $160 million in illegal transactions since 2019.
In response to these risks, some regulators around the world have tightened controls on cryptocurrency ATMs. Germanyâs financial watchdog seized 13 cryptocurrency ATMs on August 20, while the UKâs Financial Conduct Authority seized 26 unlicensed cryptocurrency ATMs last year.
