As you set your sights across the ocean, peering all the way to the most remote continent in search of signs of cryptocurrency, you'll be amazed at just how far-reaching this sector's tentacles have spread. In recent years, the number of Bitcoin ATMs in Australia has skyrocketed, making the country the fastest-growing market in the world. Back in September 2022, Australia had just 73 Bitcoin ATMs, but that number has since exploded to 1,162 installations.
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Today, Australia ranks as the third-largest market for crypto ATMs globally. However, Australia's share of the global market is still just 3%, which is a far cry from the United States, dominating with over 82% and 31,877 ATMs, followed by Canada with 3,004 ATMs and a 7.8% market share.
The rapid growth since 2022 is due to the entry of foreign companies stepping in to fill the void left after the collapse of Auscoin. A few years ago, the local cryptocurrency exchange Auscoin tried to establish a network of ATMs, but their efforts fell flat when the financial regulator AUSTRAC suspended their license due to alleged links with organized crime.
ATMs: The New Loophole for Money Laundering?
Authorities and regulators around the globe are sounding the alarm about the role of crypto ATMs in fraud and crime, claiming that these machines are a money launderer's dream come true. And all because they deal in cash and typically don’t require a bank account to use.
Some regulators have cracked down on crypto ATMs, with the German financial watchdog seizing 13 kiosks across 35 locations just last week on August 20th.
Last year, the UK's Financial Conduct Authority also confiscated 26 unlicensed crypto ATMs slashed the number of active machines in the UK by a whopping 90%.
Australian Federal Police established an inter-agency task force to combat money laundering, noting that some criminals were using crypto ATMs to rinse their ill-gotten gains in March last year.
To keep things on the up and up, some kiosks now display fraud warnings or checklists to make sure users aren’t up to no good.
Blockchain analytics company TRM Labs stated that the cash-to-crypto exchange industry is "dominated by crypto ATMs," and their analysis revealed that since 2019, this sector has processed at least $160 million worth of illegal transactions.
Last year, the illegal volume in the cash-to-crypto exchange industry accounted for 1.2% of the total volume, which is double the 0.63% for the entire crypto ecosystem.
The rise of Bitcoin ETFs in Australia
Australia isn't just about kangaroos and beautiful beaches. Beyond the growing number of Bitcoin ATMs, the Land Down Under has recently begun offering investors the opportunity to invest in Bitcoin through exchange-traded funds (ETFs).
On July 13, 2024, the Australian Securities Exchange (ASX) launched its first Bitcoin ETF. This new fund, called the VanEck Bitcoin ETF (VBTC), gives Aussies a way to invest in Bitcoin through an American-style setup. VBTC operates as a "feeder" fund, meaning it pours money into the U.S.-listed VanEck Bitcoin Trust (HODL), which trades on the Cboe exchange in the States.
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Australia’s first Bitcoin ETF, called the Global X 21Shares Bitcoin ETF (EBTC), was launched in May 2022 on the Cboe Australia Exchange (formerly known as Chi-X). While ASX only recently launched its first Bitcoin ETF, Cboe Australia has been offering such products for over two years. Monochrome launched another Bitcoin ETF (IBTC), that directly holds Bitcoin on June 4, 2024.
These ETFs have given Australian investors more options for investing in Bitcoin through regulated ETFs.
Dayo Paul
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