Due to “worrying developments” in the use of cryptocurrency ATMs, an Australian authority responsible for combating financial crime has issued stricter rules for the devices. These special ATMs may now only be used to deposit or withdraw a maximum of 5,000 Australian dollars at a time. In addition, transactions must be better monitored and fraud warnings issued. One provider has been completely banned from doing business. The Australian Transaction Reports and Analysis Center (AUSTRAC) explains that the move is a consequence of analyses by a task force that investigated fraud and illegal activities in connection with the devices.
The user base is surprisingly old
As the authority goes on to explain, the task force analyzed information from nine providers that operate cryptocurrency ATMs. According to the findings, they are used particularly frequently by people between the ages of 60 and 70. A large number of such elderly people fall victim to scams. Many are tricked into using the machines, reports ABC. The broadcaster quotes an anonymous petrol station operator who says that old people regularly use the devices and receive instructions over the phone. Overall, according to AUSTRAC, 29 percent of the sums deposited and withdrawn at all Australian machines are accounted for by 60 to 70-year-olds, with people over 50 paying as much as 72 percent of the total sums deposited.
The number of such ATMs in Australia exploded from 23 to 1,200 between 2019 and 2024, writes AUSTRAC. Most recently, almost 150,000 transactions were carried out annually, 99 percent of which were purchases of cryptocurrency – “primarily Bitcoin, Tether and Ethereum”. In total, around 275 million Australian dollars were moved. For people who are aware of the risks of cryptocurrencies, the machines could be a convenient way to invest, acknowledges AUSTRAC CEO Brendan Thomas, “but I would caution anyone who is asked to use these machines to send money”. Because once it’s gone, it’s almost impossible for authorities to get it back.
Cryptocurrency ATMs are also available in Germany, where the Austrian provider Kurant has installed machines in Saturn and Media Markt stores. Due to legal requirements, only cryptocurrency can be purchased via these machines, withdrawals are not possible. However, the data from Australia suggests that interest would be negligible anyway. The North Rhine-Westphalia consumer advice center points out that deposits are not straightforward, so an account with the provider is required. In addition, fees would be charged there, which could ultimately make Bitcoin & Co. more expensive than on “reputable platforms” on the Internet. You should only buy with money “that you can do without in case of doubt!”
(mho)
