TechFlow reported, citing a TRM Labs report referenced by CryptoPotato, that since 2019 cryptocurrency ATMs have processed at least $160 million in illicit funds. In 2023, the proportion of illicit transactions through these ATMs reached 1.2% of total transaction volume, significantly higher than the broader crypto ecosystem's rate of 0.63%.
The report highlights that cryptocurrency ATMs lack robust KYC and AML protocols, making them an ideal option for criminals. In 2023 alone, over $30 million transacted through ATMs was linked to known scam addresses. This trend has drawn global regulatory attention, exemplified by Germany's recent seizure of 13 unlicensed Bitcoin ATMs.
Meanwhile, Australia has seen a 17-fold surge in cryptocurrency ATM numbers within two years, becoming the world's third-largest market. Facing rapid growth and potential risks, regulators are striving to balance innovation with security by tightening oversight on ATM operators.
