cryptopolitan.com
Crypto ATMs are seeing an unprecedented surge in Australia. Data shows that this makes Australia the fastest-growing market for crypto ATM kiosks.
According to the latest data from Coin ATM Radar, Australia now ranks as the third largest market for crypto ATMs globally. Data shows that the US stands first with 32,000 machines, with Canada second on the list with 3,000 machines.
Australia has the presence of nearly 1,200 crypto ATMs
Australia witnessed a surge from just 73 machines two years ago to its current number of almost 1,200. US-based Bitcoin Depot Inc.’s Chief Executive Officer Brandon Mintz disclosed to Bloomberg that the country has over 200 kiosks waiting for the green flag for installation.
The ease of access to crypto and the conversion to fiat have been a few reasons cited by the operators who argued about crypto ATMs’ role in financial inclusion. However, countries like Singapore and the United Kingdom have banned crypto ATMs.
Coin ATM Radar data shows that there are over 38700 crypto ATMs installed globally, spanning over 69 countries.
Rising crypto ATMs cause worry about money laundering
Even though the rise in crypto ATM installation shows greater adoption for cryptocurrencies in Australia, it also has raised red flags from regulatory bodies regarding the potential misuse of these machines. These include the risks of money laundering, facilitation of scams, and the challenge of tracing the source of funds.
Data from blockchain intelligence firm TRM Labs shows that crypto ATMs have processed close to $160 million in illicit funds since 2019. Chainalysis also estimated $223 million worth of illegal crypto activity in Australia from 2022 to 2023.
The Australian Transaction Reports and Analysis Centre (AUSTRAC) mandates all crypto exchange providers to register and comply with anti-money laundering regulations. In addition, local banks have imposed restrictions on crypto exchange-linked transactions.
Some of the prominent banks that have implemented this include National Australia Bank Ltd., Australia & New Zealand Banking Group Ltd., Commonwealth Bank of Australia, and Westpac Banking Corp.
This move by the banks has driven crypto users to look for alternative ways to cash out their cryptocurrencies. However, the regulators are keeping these actions under the radar to curb money laundering and other illicit transactions.