Coinspeaker 334 Bitcoin ATM Go Offline Globally as BTC Price Plummets
The drop in Bitcoin (BTC) price has rippled significantly to several other aspects of the cryptocurrency industry like ATM counts.
Unfortunately, these sectors are notably registering a plunge in their metrics. According to a report from Cointelegraph, the global network of active Bitcoin ATMs has seen a sizable decrease in less than 40 days. Precisely, 334 BTC ATMs have exited the market within this time.
July Sees Massive Exit of Bitcoin ATMs
June saw 107 machines go offline and this ended the 10-month trajectory of month-on-month increases in net installation. July is only about five days gone and within this time, a total of 227 crypto ATMs have been removed from the global network, demonstrating an increase in the rate of Bitcoin ATM exit from the ecosystem. Most of these removed Bitcoin ATMs were from the United States and Europe.
Unlike Spain and Australia which are keen on expanding their Bitcoin ATM reach, the United States and the EU Appears are less concerned. The US is known to host the largest percentage of BTC and other crypto machines. Previously, about 82.6% of these machines were located in America. However, after removing 182 ATMs in June and 239 ATMs in the first week of July alone, this percentage has dropped slightly.
Within 5 days, 29 Bitcoin ATMs went offline in Europe, bringing its total down to 1,589 machines. Looking at the brighter side, Australia added 77 new Bitcoin ATMs into global circulation during the same period.
US, UK, and Europe Crackdown on Crypto
There are speculations that the ongoing decline in the population of crypto ATMs is linked to a global crackdown on digital assets by authorities in different jurisdictions. In the past, authorities have launched investigations into crypto ATMs operators and their involvement in crypto scams. Explicitly, they eventually force them into closing their business.
Almost a year ago, the Financial Conduct Authority (FCA) of the United Kingdom successfully shut down 26 crypto ATMs across the country. Most of these machines were in London, Leeds, Sheffield, Nottingham, and Exeter. In the regulator’s defence, the move was part of efforts to ensure the financial system’s integrity and prevent potential illicit activities associated with unregulated crypto transactions.
Prior to the closure of these 26 crypto ATMs, the FCA had warned their operators, stating that compliance with regulations is a prerequisite for their continued operation.
“If you use a crypto ATM in the UK, you are using a machine operating illegally and may be handing your money over to criminals. You will not be protected if something goes wrong, and you could lose your money,” Steve Smart, the Joint Executive Director of the Enforcement and Market Oversight unit at the FCA said at the time.”
He also noted that it is generally difficult to connect with the operators of the Bitcoin ATM machines. These further aggravated the concerns of the regulators that led to the cuts.
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334 Bitcoin ATM Go Offline Globally as BTC Price Plummets