DailySun
Bitcoin ATMs are emerging across the globe, with a notable 6% increase in 2024, highlighting the growing mainstream acceptance of cryptocurrency.
The count of Bitcoin ATMs continues to rise, facilitating effortless transactions for buying and selling cryptocurrencies. Recent data indicates this upward trend persists. Similar to traditional ATMs, Bitcoin ATMs enable users to deposit cash into their crypto wallets, ensuring a fast and straightforward experience.
So, what are Bitcoin ATMs exactly? These devices function like standard ATMs but are specifically designed for cryptocurrency transactions. Users can purchase Bitcoin (BTC) and occasionally other digital tokens using cash or bank cards. Some machines even permit the sale of crypto for cash, though this often incurs higher fees compared to buying.
The inaugural Bitcoin ATM was launched in Vancouver, Canada, back in 2013, marking a significant step toward making cryptocurrency more accessible to the masses. Since that launch, the growth of Bitcoin ATMs has been remarkable, surpassing 37,500 machines across over 70 countries. A recent study by Finbold, citing Coin ATM Radar data, shows that 2024 was particularly noteworthy, showcasing a 6% rise in Bitcoin ATMs.
Bitcoin ATMs Predominantly Located in the US
The United States remains the dominant player in the Bitcoin ATM landscape, accounting for over 81% of the global market share. As of January 13, there were upwards of 31,500 Bitcoin ATMs installed in the U.S., an increase of more than 1,000 machines from the beginning of 2024. The worldwide total reached 38,768, rebounding after a drop to around 33,000 in mid-2023.
Europe, while trailing the U.S., is expanding its footprint in the Bitcoin ATM sector. The report notes that despite its smaller size, Europe has seen a consistent rise in ATMs, even through downturns in the crypto market. In 2024, the region added 116 new machines, reflecting a 7.5% increase from 2023. This consistent growth is notable, especially as many areas experienced declines during the crypto winter.
The majority of 2024’s ATM growth occurred in the first half of the year. By late April, a total of 1,942 new machines were deployed globally, yielding an average of 485 installations per month from January through April. However, growth decelerated in the latter half of the year, with an addition of only 34 machines monthly between May and December. This slowdown occurred in spite of Bitcoin reaching new all-time highs in November, when its price approached $100,000.
Varied Regulatory Frameworks
In many regions, Bitcoin ATMs operate legally, though regulations differ significantly. In the U.S., they are governed by the Financial Crimes Enforcement Network, requiring operators to register as money services businesses and adhere to AML and KYC protocols for larger transactions. At the state level, operators often must acquire a money transmitter license and comply with consumer protection laws, including fee transparency and data security. Local zoning laws can also influence how crypto ATMs operate.
Globally, regulation concerning crypto ATMs differs by nation, with the U.K.’s Financial Conduct Authority increasing its oversight. In September 2024, crypto.news reported that Olumide Osunkoya, based in London, pleaded guilty to multiple offenses for managing an illegal network of crypto ATMs throughout the U.K., marking the first conviction of this nature in the country.
Earlier that same year, in August, German officials seized 13 crypto ATMs and confiscated almost $28 million in cash from 35 sites across the nation. This operation, led by BaFin, targeted machines operating without the necessary licenses, raising alarms about potential money laundering activities.
Surge in Bitcoin ATM Scams, Affecting Older Adults the Most
While the majority of Bitcoin ATMs are operated by bona fide companies, there are concerns among regulators regarding their potential use in fraudulent activities or money laundering. Recent data from the Federal Trade Commission reveals a dramatic increase in reported losses due to scams related to Bitcoin ATMs. Since 2020, the reported losses have skyrocketed nearly tenfold, surpassing $110 million in 2023.
The Federal Trade Commission also reported that fraud losses associated with Bitcoin ATMs exceeded $65 million in the first half of 2024. Individuals aged 60 and above were more than three times as likely to fall victim to Bitcoin ATM scams compared to younger individuals. Across all demographics, the median loss stood at a staggering $10,000. The FTC noted that the majority of scams involved government impersonations, business impersonations, and tech support scams.
