Canadian Bitcoin ATM Giant Launches in Australia

A sign advertises a Bitcoin automated teller machine, ATM, at a shop in Halifax on Feb. 4, 2020. The Canadian Press/Andrew Vaughan

Canada’s biggest Bitcoin ATM network is launching in Australia with more than 30 new machines.

Localcoin, a Toronto-based digital currency company, plans to start with 31 ATMs and then expand to more than 120 machines by the end of the year.

The company’s website shows the ATMs are located in the state of New South Wales in suburbs including Randwick, Manly, Mascot, Sydney, Waterloo, Rockdale, and Tennyson Point among others.

The Bitcoin ATMs enable users to instantly buy crypto with cash after verifying identity, scanning a QR code, and inserting cash.

The news comes just days after the Australian government released a plan to regulate digital and crypto assets.

Localcoin expressed it chose Australia due to its rapidly growing interest in bitcoin and “welcoming” regulatory environment.

“Australia’s burgeoning interest in cryptocurrencies, along with its welcoming regulatory environment, makes it an ideal ground for Localcoin’s expansion,” Localcoin said in a media release.

A cryptocurrency ATM in Salem, N.H., on Feb. 9, 2021. Charles Krupa/AP Photo

“With an ever-growing number of cryptocurrency users and enthusiasts, Australia represents a promising market where people are on the lookout for convenient and trustworthy platforms to buy and sell digital currencies.”

The company has more than 900 Bitcoin ATMs around the world and is aiming to “empower individuals to join the cryptocurrency economy.”

Localcoin president Jay Pandher added: “Australia is a dynamic market with immense potential, and we are eager to bring our wealth of growth and experience to this vibrant region.”

Crypto Regulation Could Be on the Way

Treasurer Jim Chalmers unveiled a proposal to regulate digital and crypto assets on 16. October.

As part of the plan, crypto exchanges and digital asset platforms must comply with existing Australian financial services laws.

Operators of crypto platforms would need to apply for an Australian Financial Services licence, under the proposed changes.

Digital asset platforms would also be required to meet minimum standards for holding tokens and transacting tokens.

“The Albanese government is acting methodically to ensure that consumers are adequately protected and innovation can flourish,”  Mr. Chalmers said in a joint release with assistant treasurer, Stephen Jones.

“Our proposals have been designed to ensure they are consistent with other jurisdictions, adopt existing financial service laws as appropriate, and create new bespoke obligations in the areas of highest risk.

“The proposed reforms seek to reduce the risk of these collapses happening by lifting the standard of the operation of platforms and increasing oversight.”

The government has released a proposal paper and is seeking feedback by Dec. 1, with another round of consultation expected next year on draft legislation.

How Popular are Bitcoin ATMs in Australia?

Bitcoin ATMs can be found in most major cities in Australia and the numbers are growing.

Statista data shows 162 Bitcoin ATMs in Sydney, 144 in Melbourne, 91 in Perth, 64 in Brisbane, and 33 in Adelaide.

The machines can also be found in cities like Newcastle, Canberra, Geelong, Hobart, Surfers Paradise, Broadbeach, Cairns, the Sunshine Coast, and Tweed Heads, according to the Oct. 2023 data.

The machines connect people to a Bitcoin wallet or exchange, rather than a bank account.