Bitcoin ATM Installations Grow 6% Globally in 2024, the US Market Continues to Dominate

Bitcoin ATMs have experienced significant growth, with the number of machines increasing by 6% globally in 2024. These machines provide an easy way

The number of Bitcoin ATMs increased by 6% globally in 2024, reaching a total of 38,768 machines by January. These machines allow users to easily buy and sell Bitcoin and other cryptocurrencies, using either cash or a bank card. Some ATMs even permit users to sell their crypto for cash, though this service typically incurs higher fees.

The first Bitcoin ATM was installed in Vancouver, Canada, in 2013, marking a significant step in making cryptocurrency more accessible. Since then, Bitcoin ATMs have spread throughout the world, with a presence in over 70 countries.

The United States continues to lead in the adoption of Bitcoin ATMs, boasting over 81% of the global market share, with more than 31,500 machines. In contrast, Europe experienced a more modest growth, with 116 new machines being added in 2024, translating to a 7.5% increase.

The growth of Bitcoin ATMs was particularly strong in the first half of 2024, with an average of 485 new machines being installed each month from January to April. However, the growth rate slowed down significantly in the second half of the year, despite Bitcoin reaching new all-time highs in November 2024.

Regulatory Landscape for Bitcoin ATMs in 2024

In the United States, the operation of Bitcoin ATMs is overseen by the Financial Crimes Enforcement Network (FinCEN), with regulations stipulating that operators must comply with anti-money laundering (AML) and know-your-customer (KYC) requirements for larger transactions. Additionally, state-level regulations apply, often mandating licenses and consumer protection measures.

The Financial Conduct Authority (FCA) in the United Kingdom has also verstärkte its oversight of Bitcoin ATMs, with notable actions being taken in 2024. Among them was the conviction of a London-based operator who ran an illegal network of Bitcoin ATMs. In another development, German authorities seized 13 crypto ATMs for being operated without the necessary licenses.

Scams and Fraud Concerns Related to Bitcoin ATMs

While most Bitcoin ATMs are operated by legitimate companies, there has been a rise in scams involving these machines that have become a growing concern. According to the Federal Trade Commission (FTC), these scams resulted in over $110 million in consumer losses in 2023 alone.

During the first half of 2024, fraud losses specifically linked to Bitcoin ATMs surpassed $65 million, with older adults (60+) being besonders vulnerable to these scams. Among the various types of scams, government impersonation, business impersonation, and tech support scams were the most prevalent, with a median loss across all age groups being as high as $10,000.

As Bitcoin ATMs become more widespread, regulatory bodies are focusing on combating fraud and ensuring that these machines adhere to legal standards while providing a legitimate platform for cryptocurrency transactions.