In the past two months, more than 600 Bitcoin ATMs went offline worldwide. Data from Coin ATM Radar reveals that the United States saw the highest number of closures, with 411 Bitcoin ATMs shut down in July and 258 more in August 2024. These closures come as law enforcement works to combat the use of Bitcoin ATMs in scams and extortion.
Bitcoin ATMs allow users to purchase cryptocurrencies using cash or debit cards. However, the anonymity and speed of these transactions have made them a target for criminal activity, leading authorities to step in and remove machines from circulation.
The U.S. is the leading country in terms of Bitcoin ATM shutdowns as regulators crack down on potential illegal activities linked to these machines.
Scams Surge, Costing Over $110M in 2023, Older Users Targeted
According to the Federal Trade Commission (FTC), Bitcoin ATM scams have significantly increased in recent years. In 2023 alone, losses from these scams exceeded $110 million. The FTC also reports that individuals aged 60 and older are three times more likely to be targeted by fraudsters using Bitcoin ATMs.
These scams often involve criminals persuading victims to use Bitcoin ATMs to transfer funds under false pretenses. Despite some ATM operators, like Bitcoin (BTC) Depot, posting warnings on their machines, scammers continue to exploit the system. Bitcoin Depot operates 8512 machines, making up 21.9% of the global Bitcoin ATM network, and uses screen prompts to alert users to potential scams.
Germany and Singapore Crack Down on Bitcoin ATMs to Combat Illegal Activities
Governments worldwide are taking action to regulate the use of Bitcoin ATMs. In August 2024, Germany’s Federal Financial Supervisory Authority seized 13 machines from 35 locations. The move was part of an effort to prevent the use of these ATMs for illegal activities, such as money laundering. Authorities stressed the need for proper Know Your Customer (KYC) practices to identify users conducting transactions over 10,000 euros.
In Singapore, Bitcoin ATMs are banned entirely. As a result, the Monetary Authority of Singapore implemented strict regulations. Furthermore, this decision was made as part of a broader effort to protect users. In addition, the ban includes tighter control on advertising cryptocurrencies to the public, aiming to reduce potential risks and ensure safer usage of crypto services.
North America Holds 91% of Global Bitcoin ATMs, with Bitcoin Depot Leading the Market
As of September 2024, Coin ATM Radar reports that 38,790 crypto ATMs are active worldwide. The United States and Canada account for about 91% of all Bitcoin ATMs. While North America remains the dominant region for crypto ATMs, regulatory pressure continues to shape the landscape.
Notably, the top 10 Bitcoin ATM operators run 28,691 machines, which accounts for about 74% of the total network. Specifically, Bitcoin Depot leads the market by operating 8,512 machines. Above all, these top operators play a significant role in the global Bitcoin ATM infrastructure and stand to be the businesses most affected by a Bitcoin ATM crackdown.
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