Number of Installed Cryptocurrency ATMs Worldwide Nears All-Time High
A recent rise in global crypto ATM installations has pushed the number of these machines closer to the all-time record, suggesting rising interest and adoption.
The number of installed crypto ATMs has recently spiked and is rising towards its current all-time high (ATH). According to data from Coin ATM Radar, the number of installed ATMs has increased to 38,281, gradually nearing the 39,541 record set in December 2022.
The increase suggests a corresponding rise in adoption levels. More ATMs means more people accept and use digital assets, leading to a demand for convenient access. Several businesses, like retail outfits, financial service providers, and convenience stores are all likely to benefit from crypto support stemming from an increase in convenient access points. The corresponding rise in crypto adoption will also boost parts of the entertainment scene, such as gambling and online casinos. There are already several top crypto sites where gamblers can deposit Bitcoin (BTC), Ether (ETH), XRP, and several other cryptocurrencies, to enjoy exciting bonuses, play a wide array of games, or join tournaments to try and win more crypto.
Factors Driving Crypto ATM Volume
Coin ATM Radar data shows that between July 2023 and May 2024, the number of crypto ATMs consistently increased every month. However, the tally reduced by 115 between May and June, picking up again in June, with a 377 jump.
Several reports suggest a few factors driving the rise in crypto ATMs. These factors include accessibility, ease of use, favorable regulatory landscapes in specific jurisdictions, and increased profits for operators who receive transaction fees. Furthermore, Bitcoin ATMs allow users to interact with the Bitcoin blockchain via deposits and withdrawals without submitting personally identifying information. This is beneficial in the crypto gambling sector, where players consider privacy necessary. Unfortunately, several factors affect the rapid growth and penetration of these machines. Factors include a lack of experience, inadequate financial backing, and regulatory struggles in some jurisdictions.
Distribution of Crypto ATMs
Regions without unsupported crypto support must overcome these limitations to compete favorably, as the distribution among countries is heavily skewed. For instance, 82% of all cryptocurrency ATMs in the world are in the United States, despite a recent decline. Although Canada is in second place, its market share is far behind, at 7.7%. While the US has more than 31,100 machines, Canada has 2,900.
The US hit 1,000 crypto ATMs in November 2017, with Canada reaching the same milestone more than three years later in January 2021. Last January, Australia broke into the top three, only a few weeks after it hit the fourth position after overtaking El Salvador. Australia became the country with the third-largest number of crypto ATMs after installing 16 in weeks. Australia has 1,002 crypto ATMs, making up 2.7% of the world’s Bitcoin ATM network as of April 24. Forecasts suggest Australia could overtake Europe’s 1,617 machines at its current growth rate.
Other noteworthy countries and their crypto ATM counts include Hong Kong’s 157, Germany’s 194, Poland’s 211, El Salvador’s 215, and Spain’s 261 machines.
Crypto ATM Crime
Despite the points in favor of crypto adoption, crypto ATMs are sometimes used as tools for scammers. For instance, the Federal Trade Commission noted that scammers and criminals convinced unsuspecting victims to feed $22 million into crypto ATM machines in several government impostor scams in 2021. In 2022, the Federal Reserve reported that at least $35 million worth of fraudulent transactions were perpetrated using crypto ATMs.
The state of Connecticut is now planning to crack down on crypto ATMs and regulate them like traditional machines. House Bill 5211 proposes that crypto ATMs acquire money transmitter licenses and remain subject to conventional regulations. The bill would also limit service fees and require receipts for all transactions.