Over the past two years, the number of new crypto ATMs in Australia has increased 17 times. TRM Labs has warned about their potential for use in criminal activities.
In the past two years, the number of new crypto ATMs in Australia has increased by 17 times, making it one of the fastest-growing markets for terminals in the world. This is despite the growing concerns regarding their use by malicious actors.
According to data from Coin ATM Radar, the nation has grown from 67 machines in August 2022 to 1,162 machines, making it the third-largest market for crypto ATMs globally.
Since the conclusion of April, 160 ATMs have been installed in Australia, which has recently achieved the milestone of having more than 1,000 operational devices.
TRM Labs, a blockchain intelligence firm, stated in a post on August 28 that the ATM growth in Australia was “the most significant expansion of the cash-to-crypto industry over the last few years.”
Nevertheless, Australia’s global market share is a mere 3%, a far cry from the United States’ dominance of over 82%, attributed to its 31,877 ATMs. Canada follows with 3,004 machines and a 7.8% share.
Nevertheless, it is improbable that law enforcement failed to observe the increase.
The Australian authorities have identified the crypto terminals as a “money laundering vulnerability,” according to TRM Labs.
The Australian Federal Police established a multi-agency money laundering task force in March last year, recognizing that certain criminals employed crypto ATMs to conceal their illicit gains.
Crypto ATMs process illicit transactions totaling $160 million
TRM Labs stated that authorities and regulators worldwide are concerned about the involvement of crypto ATMs in scams and crimes. They contend that these devices are more susceptible to money laundering due to their use of currency and the fact that they do not typically necessitate an account.
The company asserted that the cash-to-crypto industry is “dominated by crypto ATMs” and that its analysis revealed that the sector has processed at least $160 million in illicit transactions since 2019.
“Illicit volumes in the cash-to-crypto industry were 1.2% of the total volume last year, which is twice the 0.63% for the overall crypto ecosystem,” it continued.
Scams and fraud were responsible for the majority of illicit volumes in 2023, with over $30 million—nearly 80% of the total illicit volume—being transferred to crypto wallets that were known to be associated with scams and fraud, according to TRM Labs’ analysis.
The company observed that certain kiosks display an anti-scam warning or protocol to prevent users from using them for improper purposes.
On August 20, Germany’s financial authority confiscated 13 kiosks from 35 locations as part of a crackdown on crypto ATMs.
TRM Labs reported that the number of active machines in Britain was reduced by 90% due to the United Kingdom’s Financial Conduct Authority’s removal of 26 unlicensed crypto ATMs last year.
