Decline in crypto ATMs: US loses 1,200 machines in days
In a curious turn of events, over 1,200 cryptocurrency ATMs in the United States suddenly went offline during the first weekend of March. This happened just a few days after a senator introduced the Crypto ATM Fraud Prevention Act, a piece of legislation aimed at tackling the growing issue of fraud at these machines.
The move to regulate crypto ATMs gained momentum on February 25th when Illinois Senator Dick Durbin put forward a bill to combat fraud specifically targeting these devices across the US. Senator Durbin mentioned a recent incident involving one of his constituents as a key reason for his proposal. Interestingly, this legislative push came in the same month that saw the installation of 860 *new* crypto ATMs in the country.
However, despite the continued installations, the very beginning of March painted a different picture. In just the first three days, the global network of Bitcoin
ATMs experienced a net decrease of 1,100 machines worldwide. A significant portion of this decline occurred in the US, which alone accounted for 1,233 ATM closures. Data from Coin ATM Radar indicates that new installations in other regions, including Europe, Canada, Spain, Poland, Australia, and Switzerland, partially lessened the impact of these closures.
Chart showing the net change of cryptocurrency machines number installed and removed monthly in the US. Source: Coin ATM Radar
The US is home to the world’s largest crypto ATM network
While the sudden wave of closures is noteworthy, it’s important to remember that it only represents a slight reduction in the overall size of the extensive crypto ATM network within the United States.
The distribution of crypto ATMs installed in various countries and on continents. Source: Coin ATM Radar
As of March 3rd, the United States still impressively hosts 29,731 crypto ATMs. This staggering number means the US is home to almost 80% (specifically, 79.9%) of all crypto ATMs across the globe. Trailing behind, but still significant, are Canada and Australia, holding the next largest shares with 3,085 ATMs (8.3%) and 1,467 ATMs (3.9%), respectively.
Total number of Bitcoin machines installed globally over time. Source: Coin ATM Radar
Stagnant crypto ATM growth amid regulatory crackdown
Globally, there are currently 37,226 cryptocurrency ATMs in operation. However, the once rapid expansion of the crypto ATM market has slowed down considerably since mid-2022. This stagnation is largely attributed to the evolving regulatory landscape and increased enforcement actions against businesses that are operating without proper registration.
Related: UK hands down first criminal sentence over illegal crypto ATMs
Source: Dick Durbin
Senator Durbin’s proposed legislation aims to address these concerns by requiring crypto ATM operators to display clear warnings about potential scams, thereby helping to protect users from fraud. Furthermore, the legislation seeks to introduce measures that can minimize financial losses for victims and equip law enforcement with better tools for tracking down illegal crypto transactions.
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