The US crypto ATM network has suffered a major decline, with over 1,200 machines going offline in just days. The sudden drop comes amid increased regulatory scrutiny, including a newly proposed Crypto ATM Fraud Prevention Act, raising concerns about the future of crypto teller machines in the country.
Between March 1 and March 3, the global Bitcoin ATM network saw a net decline of 1,100 machines, with 1,233 closures happening in the US alone, according to Coin ATM Radar data.
This rapid contraction occurred just days after Illinois Senator Dick Durbin introduced the Crypto ATM Fraud Prevention Act on February 25. The bill aims to crack down on fraud involving crypto ATMs, requiring operators to issue scam warnings and introduce new tracking measures for illicit transactions.
Ironically, the US had also recorded 860 new crypto ATM installations in February, making the sudden disappearance of 1,200 machines in early March even more dramatic.
The US Still Dominates the Global Crypto ATM Market
Despite the massive reduction, the US still holds a commanding 79.9% share of the global crypto ATM network, with 29,731 active machines as of March 3.
- United States: 29,731 ATMs (79.9% of global total)
- Canada: 3,085 ATMs (8.3%)
- Australia: 1,467 ATMs (3.9%)
New installations in Europe, Canada, Spain, Poland, Australia, and Switzerland helped offset some of the losses, but the US remains by far the largest market for crypto teller machines.
Crypto ATM Growth Has Stalled Since 2022
The global crypto ATM network has struggled to expand since mid-2022, largely due to increasing regulations and crackdowns on unregistered operators.
Senator Durbin’s newly proposed bill could place even stricter compliance measures on crypto ATM providers, requiring them to:
- Warn users about potential scams.
- Implement fraud prevention measures to reduce the risk of financial losses.
- Enhance law enforcement tracking tools for illicit transactions.
This regulatory push, combined with decreasing demand and concerns over money laundering, may be driving smaller or non-compliant operators out of business, leading to the recent wave of shutdowns.
Final Takeaway
The sudden disappearance of 1,200 crypto ATMs in days highlights the growing regulatory challenges and operational risks facing the industry. With lawmakers pushing for stricter oversight and crypto ATM growth stagnating, the industry is at a crossroads.
The key question now: Is this a short-term market adjustment, or the beginning of a long-term decline for crypto ATMs in the US?
