Another week, another reminder that crypto never sleeps.
From the US cracking down on convertible virtual currency kiosks, to a retired Aussie cop losing his life savings in a high-stakes scam, and Indonesia hiking taxes on crypto transactions; regulation, fraud, and shifting policy are shaping the landscape fast.
As governments tighten controls and fraudsters get bolder, this week’s stories reveal the evolving balance between opportunity and oversight in global crypto markets. Let’s get into it.
Crypto ATMs under fire as FinCEN issues fraud warning
Crypto ATMs, or convertible virtual currency (CVC) kiosks, are coming under increased scrutiny as US authorities warn they’re being exploited forscams and money laundering.
In a new advisory, the Treasury’s Financial Crimes Enforcement Network (FinCEN) urged financial institutions and kiosk operators to tighten compliance with anti-money laundering rules, citing a sharp rise in both machine numbers and fraud cases.
According to FinCEN, many kiosk operators are not registering as money services businesses under the Bank Secrecy Act, leaving gaps that criminals are quick to exploit. Common scams include tech support cons and bank impersonation fraud. Victims, often older adults, are coaxed into depositing cash into crypto ATMs and unknowingly sending funds directly to fraudsters.
FinCEN outlined several red flags for abuse, including customers making multiple transfers just under the suspicious activity threshold, using multiple kiosks in one day, and first-time users making unusually large deposits. Other signs include people withdrawing large amounts of cash specifically to fund crypto ATM transfers, and kiosks that don’t provide receipts or require ID.
Additionally, FinCEN has foundthat crypto ATMs are also being used to launder suspected drug proceeds. The Drug Enforcement Administration (DEA) reports that transnational criminal organizations are increasingly using crypto ATMs because theyfacilitaterapid international fund transfers.
The warning follows increasing global pressure for reform. New Zealand has banned crypto ATMs entirely, while Australia is introducing tighter rules like spending limits and stricter KYC checks. In the US, a proposed bill would require operators to register machines, set transaction limits for new users, and issue detailed receipts to help trace fraud.
Why this matters:
As crypto adoption rises, so does its misuse, and crypto ATMs have become a soft spot in the system. FinCEN’s notice reinforces the urgent need for stronger oversight and industry-wide coordination. Left unchecked, these kiosks offer a convenient on-ramp not just for users, but for criminals too.
Read more on Financial Crimes Enforcement Network website
Retired Aussie cop loses $1.9M in crypto scam
A retired Australian police officer has reportedly lost over $1.9 million AUD after falling for a sophisticated crypto scam operated by a German expat in Thailand.
Promised returns of 5–10% per month through a private crypto platform, the victim handed over his life savings only to have the platform vanish and the alleged scammer continue flaunting his luxury lifestyle online.
The expat, who retired to Thailand after a career as a cop in Queensland admitted he had “made a mistake.”
“I was genuinely looking forward to a happy retirement with my Thai wife and never imagined I would be defrauded of nearly 40 million Baht like this. I am deeply saddened,” he said.
Thai police have since issued an arrest warrant and facilitated a tense in-person meeting between the two men.
Why this matters:
Crypto scams continue to exploit trust and promise outsized returns, and even those with law enforcement backgrounds aren’t immune. The case is a stark reminder of how cross-border fraudsters use the anonymity and glamour of crypto to target victims and avoid prosecution.
This case is exactly why Scam Alert exists. Scams like this are devastating,andthey’rehappening every day. If you have lost crypto through a scam, you can now report incidents safely,and contribute to a growing network that helps expose criminal patterns, support investigations, and prevent others from falling victim. Read more about Scam Alert and our mission here.
Read more on news.com.au
Indonesia raises crypto tax for overseas exchanges to 1%
From August 1 2025, Indonesia significantly raised its crypto transaction taxes, with overseas exchanges now subject to a 1% levy, up from 0.2%.
Domestic exchanges will see a more modest increase from 0.11% to 0.21%, and crypto buyers will no longer pay VAT. However, crypto miners will face doubled VAT rates of 2.2%.
The policy aims to shift advantage to local platforms like Indodax and Tokocrypto, while capturing more tax revenue from the rapidly growing market. With over 14.7 million registered traders, crypto use in Indonesia now surpasses traditional stock investment.
Why this matters:
Indonesia is embracing crypto on its own terms. The new tax structure incentivizes domestic exchanges and reflects a broader trend of governments seeking revenue and regulatory control in booming digital asset markets. For global platforms, this could mean higher compliance costs or shrinking market share.
Read more on Crypto News
