Australia’s anti-money laundering regulator, AUSTRAC, enacted a series of measures for crypto ATM providers to clamp down on scammers using the devices to target the elderly.
AUSTRAC is putting a $5,000 limit on crypto ATM cash deposits and withdrawals, requiring operators to enhance their customer due diligence obligations, include scam warnings and monitor transactions, CEO Brendan Thomas said in a statement on Monday.
The response follows data that showed the ATMs were being used for scam and fraud-related transactions, and that scammers were targeting older members of the population. The regulator obtained data from nine crypto ATM providers that revealed crypto users over the age of 50 accounted for 72% of all transactions and 60-to-70 year olds for 29% of transactions.
“It is a huge concern that people in this demographic are over-represented as customers using cash to purchase cryptocurrency and, as evidence suggests, that a large number of 60-70 year old users are victims of scam activity,” Thomas said.
Australia has the highest numbers of crypto ATMs in the Asia Pacific region, a number that is increasing. The nation has some 1,600 machines in use, up from just 23 in 2019, AUSTRAC said. Almost 150,000 transactions occur annually and $275 million is being moved using crypto ATMs to mostly purchase bitcoin BTC, Tether’s USDT and ether ETH, the statement added.
The regulator also said it refused to renew the registration of Harro’s Empires because it found its crypto ATMs could be exploited.
Austrac has also been warning crypto ATM providers to register with it and have the correct money laundering checks in place.