More than 600 Bitcoin ATMs were removed globally in Q3 2024, mostly in the US due to concerns about increased fraud and criminal activity.
The Bitcoin ATM market has seen a significant decline in recent months, with more than 600 machines shutting down in just the first two months of Q3 2024. According to data from Coin ATM Radar, the global Bitcoin ATM network dropped by 435 machines in July and 182 in August, with the United States being the hardest hit country, recording 669 ATMs shutting down in the two months.
The decline comes as law enforcement agencies around the world are increasing their scrutiny and control of Bitcoin ATMs, which are often linked to fraud and money laundering. The US Federal Trade Commission (FTC) reported a 10-fold increase in Bitcoin ATM scams since 2020. Fraudsters take advantage of the anonymity and transaction speed of cryptocurrencies to commit crimes. The FTC estimates that losses from Bitcoin ATM scams will exceed $110 million by 2023, with people over 60 being the target.
Faced with this situation, many local governments in the US have begun to take steps to tighten management of Bitcoin ATMs. On August 7, a local government committee in Chico, California discussed a regulatory framework for these ATMs, proposing that they be considered like banks to increase control and prevent illegal activities.
Other countries are also putting pressure on the Bitcoin ATM market. Germany's Federal Financial Supervisory Authority seized 13 Bitcoin ATMs in August 2024 and warned of the risk of them becoming a tool for money laundering if not strictly controlled. Singapore has even banned Bitcoin ATMs altogether as part of its efforts to regulate the cryptocurrency market.
Globally, there are currently around 39,000 cryptocurrency ATMs. Source: Coin ATM Radar
Despite Bitcoin Depot, the world’s largest Bitcoin ATM operator, claiming to have installed fraud warnings on its devices, the wave of Bitcoin ATM closures continues. According to Coin ATM Radar, as of September 5, 2024, there were only 38,790 active cryptocurrency ATMs worldwide, a significant decrease from the previous number. The US and Canada are the two largest markets, accounting for 91% of all Bitcoin ATMs worldwide.
Cryptocurrency ATM Distribution by Continent and Country. Source: Coin ATM Radar
In contrast, Australia is witnessing an explosion in the number of Bitcoin ATMs, with a staggering 17-fold growth over the past two years. According to data from Coin ATM Radar, Australia now has 1,162 Bitcoin ATMs, compared to a modest 67 in August 2022, making Australia the third largest market in the world for this type of ATM.
