Tasmania, an island state of Australia, has raised alarm about the usage of crypto ATMs for fraud. In a Friday statement, Tasmania Police Cyber Investigation disclosed that the top 15 users of crypto ATMs within its region are all victims of scams.
The police said the sufferers had lost about 2.5 million Australian dollars ($1.6 million) to fraudsters. Accordingly, over a third of the funds, about $592,000, were deposited into crypto ATMs.
The statement underlines how security operatives in the state are growing in concern over the usage of cryptocurrency ATMs for illicit activities. According to Sergeant Paul Turner of the Tasmanian police, most of the victims were ordered by fraudsters to use crypto ATMs.
He revealed that the victims suffered manipulation, intimidation, and pressure to invest in fraudulent investments. Also, Turner mentioned how some of the victims fell into romance scams.
The security operative narrated how the scammers resorted to crypto ATMs after some financial institutions in the state complained about suspicious transactions.
Currently, Australia is one of the largest cryptocurrency hubs in the world due to its relaxed regulatory approach. Underlining the increasing adoption of crypto innovation in the country, less than 24 hours ago, the Reserve Bank of Australia (RBA) announced the next stage of its digital asset pilot program.
According to a Binbits report, the RBA aims to explore how digital currencies and tokenized assets can support the wholesale financial markets. As reported, 3 of the top banks in Australia will participate in the program.
Broader clampdown on crypto ATMs in Australia
Meanwhile, the latest disclosure will deal a huge blow to the fast-rising number of digital assets adoption that has also initiated the use of crypto ATMs in Tasmania and Australia at large. It is worth mentioning that the statement by the Tasmanian Police Cyber Investigation surfaced a few weeks after a federal declaration against crypto ATMs in Australia.
In June, the Australian Federal Police and the country’s financial intelligence agency (AUSTRAC) declared a national enforcement mission to crack down on the illegal use of crypto ATMs. As part of its operation, AUSTRAC released new directives that placed transaction limits on crypto ATMs.
However, in the last four years, the figure of crypto ATMs in Tasmania has been on the rise, skyrocketing from 1 in 2021 to more than 20 in 2025. In terms of Bitcoin and crypto ATM usage, Australia only sits third behind the US and Canada.
Between August 2022 to July 2025, Bitcoin and crypto ATMs in the country increased from 67 to more than 1,890.
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