Bitcoin ATM installations in Australia have seen a dramatic increase in recent years, positioning the country as one of the fastest-growing markets for cryptocurrency kiosks.
According to data from Coin ATM Radar, the number of Bitcoin ATMs in Australia has surged from just 73 in September 2022 to over 1,160 by mid-2023. This rapid growth follows a period of limited expansion and regulatory challenges.
Australia’s Global Standing in the Bitcoin ATM Market
Australia now ranks third globally in terms of Bitcoin ATM installations, behind only the United States and Canada. The U.S. leads the market with 31,861 ATMs, while Canada follows with 3,004 machines. Despite Australia’s impressive growth, the number of kiosks in the country remains significantly lower than its North American counterparts. However, its rapid expansion reflects a growing interest in cryptocurrency and the demand for accessible ways to buy and sell Bitcoin.
Early Challenges and Regulatory Hurdles
The surge in Bitcoin ATM installations comes after several years of false starts in the Australian market. In 2019, during a period of rising cryptocurrency prices, the country’s regulatory body, AUSTRAC, cracked down on cryptocurrency ATMs due to concerns over their potential involvement in criminal activities. Local exchange Auscoin, which initially led the charge in building a network of ATMs, faced a major setback when its license was suspended over alleged links to organized crime. This crackdown stalled further growth in the market, creating a gap in the industry.
In April 2022, AUSTRAC reiterated its concerns regarding the potential misuse of cryptocurrency ATMs, highlighting them as a possible channel for criminal financing in its “Preventing the Criminal Abuse of Digital Currencies” report. While Bitcoin ATMs are legal in Australia, they must be licensed and adhere to strict regulations designed to curb illicit activities.
Renewed Growth Driven by Overseas Players
Australia’s Bitcoin ATM market saw renewed growth beginning in late 2022, driven largely by overseas companies stepping in to fill the void left by Auscoin’s failure. One of the leading players is CoinFlip, a U.S.-based company that has rapidly expanded its presence in Australia and New Zealand. CoinFlip currently operates 700 Bitcoin ATMs across the region, making it the largest operator in the country.
CoinFlip’s entry into the Australian market was facilitated by its acquisition of local company Layer 8 Networks in 2022. This strategic move occurred just as the national Bitcoin ATM network began to expand rapidly, marking a turning point for the industry.