ccording to data from Coin ATM Radar, Australia has recorded a full-on explosion in crypto ATM numbers within just the last two years, easily making it one of the fastest-moving markets for the machines.
Today, the country is positioned in third place globally with 1,162 crypto ATMs, up from 67 in August 2022.
Such growth indeed reflects the rise of interest in cryptocurrencies, but on another hand, it shows a different side of the possible misuse of their potential.
Fast-Moving Growth of Crypto ATMs
The crypto-ATM market of Australia has grown tremendously, adding 160 machines from April. That's only behind the United States, which leads with more than 31,877 machines, and Canada, with approximately 3,004 machines.
TRM Labs, a blockchain intelligence firm, pointed to such a trend as the most meaningful growth of cash-to-crypto in recent years.
Yet despite this phenomenal growth, Australia has only a 3 percent share of the international market. But the sudden surge has not escaped the attention of the authorities and regulators. They become increasingly suspicious of its use as a conduit for illicit activities.
Misuse Concerns
Meanwhile, TRM Labs has indicated several times the ability of crypto ATMs to become an easy ground for scams and other criminal activities, such as money laundering.
According to the firm, at least $160 million in illicit transactions have been processed by the cash-to-crypto industry since 2019 alone, with 1.2% of last year's transaction volume already considered illicit—twice as high as for the crypto ecosystem in general.
While regulators in other parts of the world have already moved against them, Germany's financial regulator recently confiscated 13 crypto kiosks; likewise, Britain's Financial Conduct Authority withdrew 26 unauthorized machines last year, cutting by 90% the number of active ATMs in Britain.
Pre-Emptive Steps and Regulatory Action
Due to these issues, several crypto ATM operators have introduced measures to avoid being misused.
Australian regulators have also taken steps in that direction. The Australian Federal Police announced the creation of a multi-agency task force to address money laundering, citing the use of crypto ATMs by criminals to launder money.
The proactive approach would serve to prevent the misuse of these machines, while facilitation provided by such machines can be availed of and utilized by legitimate users.
