According to TechFlow, CryptoPotato cited a report from blockchain intelligence platform TRM Labs, showing that cryptocurrency ATMs have processed at least $160 million in illegal funds since 2019. In 2023, the proportion of illegal transactions at these ATMs reached 1.2% of the total transaction volume, far higher than the 0.63% of the entire crypto ecosystem.

The report pointed out that the lack of strict KYC and AML protocols in crypto ATMs makes them an ideal choice for criminals. In 2023 alone, more than $30 million was associated with known fraud addresses. This trend has attracted the attention of regulators around the world, such as Germany’s recent seizure of 13 unlicensed Bitcoin ATMs.

Meanwhile, the number of crypto ATMs in Australia has surged 17 times in two years, making it the world's third largest market. Faced with rapid growth and potential risks, regulators are working to balance innovation and safety and strengthen supervision of ATM operators.