Bitcoin ATMs are emerging across the globe, with a notable 6% increase in their numbers in 2024, highlighting the growing mainstream acceptance of cryptocurrency.
The proliferation of Bitcoin ATMs continues, making it easier for individuals to buy and sell cryptocurrencies. Recent studies reveal that this upward trajectory is ongoing. Similar to traditional ATMs, Bitcoin ATMs enable users to deposit cash into their crypto wallets, ensuring a swift and straightforward process.
So, what exactly are Bitcoin ATMs? These devices function like standard ATMs but cater specifically to cryptocurrencies. Bitcoin (BTC) and occasionally other tokens can be purchased using cash or a debit/credit card. Some machines even permit the sale of crypto for cash, though the associated fees tend to be higher compared to purchases.
The inaugural Bitcoin ATM made its debut in Vancouver, Canada, in 2013, marking a significant milestone in enhancing public access to cryptocurrency. Since then, the number of Bitcoin ATMs has surged, with over 37,500 machines available in more than 70 countries. According to the latest research from Finbold, based on data from Coin ATM Radar, 2024 has been a remarkable year, showing a 6% increase in Bitcoin ATMs.
Bitcoin ATMs predominantly found in the US
The United States remains the frontrunner in Bitcoin ATMs, accounting for over 81% of the global market share. As of January 13, there were more than 31,500 Bitcoin ATMs operating in the U.S., an increase of over 1,000 machines since the beginning of 2024. The worldwide total reached 38,768, recovering from a decline in mid-2023 when the figure fell to around 33,000.
Europe, with a smaller yet expanding footprint in the Bitcoin ATM landscape, is witnessing a consistent rise in the number of machines, even amid crypto market downturns. In 2024, the region welcomed 116 new ATMs, reflecting a 7.5% growth from the previous year. This consistent growth is noteworthy since numerous other areas experienced declines during the crypto winter, as highlighted in the report.
The majority of the growth in ATMs during 2024 occurred in the first half of the year. By late April, 1,942 new machines had been installed globally, representing an average of 485 machines per month from January to April. However, the pace of increases slowed significantly in the latter half, with merely 34 machines added monthly from May to December. This downturn occurred despite Bitcoin reaching new all-time highs in November, nearing a price of $100,000.
Varied regulatory frameworks
In many regions, Bitcoin ATMs are permitted, although regulations differ significantly. In the U.S., they fall under the jurisdiction of the Financial Crimes Enforcement Network, requiring operators to register as money services businesses and adhere to anti-money laundering (AML) and know your customer (KYC) regulations for larger transactions. State regulations may necessitate a money transmitter license, along with compliance with consumer protection laws governing fee transparency and data security. Local zoning regulations may also affect how crypto ATMs can operate.
On the international front, regulations surrounding crypto ATMs differ by country, with the U.K.’s Financial Conduct Authority intensifying its scrutiny. In September 2024, crypto.news reported that Olumide Osunkoya, based in London, pleaded guilty to multiple offenses linked to operating an illegal network of crypto ATMs throughout the U.K. This marked the first conviction of its type in the country.
Earlier in August, German authorities confiscated 13 crypto ATMs and seized nearly $28 million in cash from 35 locations nationwide. This operation, conducted by BaFin, targeted machines functioning without necessary licenses, raising alarms about potential money laundering.
Increasing incidents of Bitcoin ATM scams, particularly affecting older adults
Although most Bitcoin ATMs are operated by legitimate businesses, there are rising concerns about their potential use in fraud or money laundering activities. Recent data from the Federal Trade Commission indicates a significant surge in the amount of money consumers report losing to Bitcoin ATM scams. Reported losses have surged nearly tenfold since 2020, exceeding $110 million in 2023.
The Federal Trade Commission found that fraud losses related to Bitcoin ATMs surpassed $65 million in the first half of 2024. Individuals aged 60 and older were more than three times as likely to fall victim to Bitcoin ATM scams compared to younger demographics. Across all age groups, the average loss was an astounding $10,000. Most scams reported involved government impersonation, business impersonation, and tech support scams, according to the FTC.
