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  • 3 months ago
The financial crimes regulator has taken action against a second crypto ATM operator as it cracks down on the machines being used by criminals for money laundering and scams. Australia has the third highest number of crypto ATMs in the world behind the US and Canada but there are growing calls to outright ban them. Operators argue they provide a legitimate way for customers to buy crypto currency.

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00:00Dorothy Dial lost her life savings in a scam involving a crypto ATM.
00:07They are very, very convincing. I mean, I'm a person who is aware of scam.
00:13The pensioner was tricked into withdrawing cash and depositing it into a Bitcoin ATM at a local grocery store.
00:21So he says now you walk into the supermarket and don't talk to anybody all the time.
00:28Australians are losing millions to crypto ATM scams as criminals exploit the machines as banks crack down on suspicious transactions.
00:38It's a very direct way to move cash into an offshore account quickly and without any face-to-face interaction.
00:46AUSTRAC has shut down one operator and hit another with a fine for weaknesses in its money laundering controls.
00:54But despite the financial crimes regulator also announcing $5,000 transaction limits in June, another 200 machines have popped up around the country, bringing the total to more than 2,000.
01:07Operators argue the machines provide a legitimate way for customers to buy cryptocurrency.
01:13The Federal Government has flagged new powers for AUSTRAC to crack down on crypto ATM operators, but has so far ruled out an outright ban.
01:23It's a step that's already been taken in countries like the United Kingdom and New Zealand.
01:28It's also something consumer advocates and banks here are calling for.
01:33Ultimately, the only way to effectively stop scams through crypto ATMs is to ban crypto ATMs.
01:41For Dorothy, any reforms will come too late.
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