The number of Bitcoin ATMs worldwide grew by 6% in 2024, reflecting how cryptocurrencies are becoming more mainstream and accessible to the public.
Bitcoin ATMs: Easy Access to Cryptocurrencies
Bitcoin ATMs operate similarly to traditional ATMs but allow users to buy and sell cryptocurrencies such as Bitcoin using cash or payment cards. Some machines even enable selling cryptocurrencies for cash, although transaction fees are typically higher.
The first Bitcoin ATM was installed in 2013 in Vancouver, Canada, marking a milestone in making cryptocurrencies accessible to the public. Today, there are over 37,500 Bitcoin ATMs across more than 70 countries, showcasing their growing popularity.
The U.S. Leads in Bitcoin ATM Installations
The United States continues to dominate the Bitcoin ATM market, holding more than 81% of the global share. As of January 13, 2024, the U.S. had over 31,500 Bitcoin ATMs, representing an increase of more than 1,000 machines compared to the start of the year.
In Europe, the Bitcoin ATM market is smaller but steadily growing. In 2024, 116 new machines were added in the region, representing a 7.5% increase compared to 2023. This growth persisted despite downturns in the cryptocurrency market, highlighting the resilience of the European market.
Diverse Regulatory Approaches to Crypto ATMs
Bitcoin ATMs are legal in most countries, but regulations vary. In the U.S., operators must comply with AML (anti-money laundering) and KYC (know-your-customer) rules and register as financial services businesses.
In Europe, several high-profile crackdowns have targeted illegal crypto ATMs. In Germany, authorities seized 13 crypto ATMs and $28 million in cash in August 2024 due to suspected money laundering. Similarly, the U.K. saw its first conviction for operating an illegal Bitcoin ATM network.
Bitcoin ATM Fraud on the Rise
Despite their legitimate use, Bitcoin ATMs have become a target for scammers. The Federal Trade Commission (FTC) revealed that reported losses linked to Bitcoin ATM fraud increased tenfold since 2020, surpassing $110 million in 2023.
In the first half of 2024 alone, Bitcoin ATM-related fraud accounted for $65 million in losses. Older adults aged 60+ were more than three times as likely to fall victim to these scams compared to younger users, with a median loss of $10,000. Common scams included impersonating government officials, corporate representatives, and tech support.
Summary: Growing Popularity and Challenges for Bitcoin ATMs
Bitcoin ATMs are becoming increasingly popular due to their convenience and global expansion. The year 2024 witnessed significant growth despite regulatory challenges and the risk of fraud. These machines represent a critical step toward wider cryptocurrency adoption but also require enhanced security and regulatory oversight to address potential misuse.
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