Crypto ATM Crackdown: 1,200 Machines Offline Amidst Global Regulation Tightening
1min read The global crypto ATM network has experienced a significant contraction, with over 1,200 machines going offline in recent days. This development comes amidst a crackdown on illegal crypto activities, with the United Kingdom issuing its first criminal sentence for operating an unregistered crypto ATM network. As regulations tighten, the future of digital cash remains uncertain.
On March 3, 2025, a total of 1,233 crypto ATMs went offline worldwide, with the United States accounting for the majority of the shutdowns. This sudden decline follows the introduction of the Crypto ATM Fraud Prevention Act by Illinois Senator Dick Durbin, which aims to curb money laundering associated with these machines. The US is home to the world's largest crypto ATM network, with 29,731 machines as of March 3, 2025.
The UK's Financial Conduct Authority (FCA) sentenced Olumide Osunkoya to four years in prison for illegally operating a crypto ATM network. Osunkoya operated unregistered machines at 28 different locations through his company GidiPlus, processing $3.14 million between 2019 and 2022. The FCA found that Osunkoya failed to prevent criminals from using the ATMs for money laundering and attempted to evade detection by transferring the machines under a false name.
The UK's criminal sentence against Osunkoya has sparked a global response, with the US introducing legislation to address fraudulent activities in crypto ATMs. The Illinois legislation, along with increased scrutiny from other governments, has led to a domino effect, with many operators choosing to follow more rigorous rules or stop operations altogether. The future of crypto ATMs remains uncertain as governments tighten control over digital transactions.
As the crypto ATM network transitions, the industry is under increasing pressure to meet regulatory requirements. The recent shutdowns may serve as a catalyst for innovation, leading to more stable and controlled possibilities such as bank-integrated cryptocurrency services and mobile payment solutions. Despite the challenges, the development of robust and secure cryptocurrency ATMs continues at a rapid pace.
