Crypto ATM Network Shrinks: 1,200 Machines Offline in US
1min read The crypto ATM network in the United States has experienced a significant contraction, with over 1,200 machines going offline during the first weekend of March. This decline comes amidst increasing regulatory scrutiny and enforcement actions against unregistered businesses in the industry. The global Bitcoin ATM network saw a net loss of 1,100 machines in early March, with the US accounting for the majority of these closures.
Crypto ATMs are self-service machines that facilitate the buying and selling of cryptocurrencies like Bitcoin using cash, debit cards, or other payment methods. Unlike traditional ATMs, they connect to cryptocurrency exchanges, enabling transactions between fiat currency and digital assets. However, due to their potential use in fraud and money laundering, crypto ATMs are subject to increasing regulation in many countries.
The sudden reduction in machines only slightly impacted the US’s dominance in the crypto ATM industry. As of March 3, the United States was still home to the world’s largest crypto ATM network, with 29,731 machines, representing about 79.9% of the global total. Canada follows with 3,085 ATMs, accounting for 8.3%, while Australia ranks third with 1,467 ATMs, representing 3.9%. Meanwhile, new installations in Europe, Canada, Spain, Poland, Australia, and Switzerland helped mitigate the overall decline.
The crypto ATM industry has faced challenges since mid-2022 due to increased regulatory scrutiny and enforcement actions against unregistered businesses. The stagnation in growth has been attributed to these evolving regulations, which have made it more difficult for operators to expand. While the exact reason for the recent ATM closures is still unclear, the timing of these developments indicates that there is still intense regulatory pressure on the industry.
Illinois Senator Dick Durbin recently introduced the Crypto ATM Fraud Prevention Act, which aims to reduce fraud at cryptocurrency ATMs across the United States. The bill seeks to implement safeguards against scams by requiring crypto ATM operators to warn consumers about potential fraud and take reasonable steps to prevent these crimes. The legislation also introduces measures to minimize financial losses for victims and equip law enforcement with better tools to track and prosecute criminals. The proposed regulations include a special protection period for first-time crypto ATM users, during which deposits will be limited to $2,000 per day or $10,000 in total 