Crypto ATM Network in the US Has Seen a Dramatic Decline

The U.S. has seen a dramatic decline in its crypto ATM network just days after Illinois Senator Dick Durbin introduced the Crypto ATM Fraud Prevention Act.

The U.S. has seen a dramatic decline in its crypto ATM network just days after Illinois Senator Dick Durbin introduced the Crypto ATM Fraud Prevention Act. The bill aims to combat rising fraud in cryptocurrency ATM transactions by requiring operators to warn users of scams, develop steps to reduce losses, and equip law enforcement with the means to track illicit transactions.

Through March 3, the U.S. had 79.9% of the world’s crypto ATM network, with 29,731 machines in operation. However, between the first weekend in March and March 3, over 1,200 crypto ATMs in the U.S. went dark without explanation, resulting in a net worldwide decrease of 1,100 machines. Despite new installations in Europe, Canada, Spain, Poland, Australia, and Switzerland, the U.S. saw the greatest decline, according to Coin Market Radar data.

(Image: Bankless Times)

Crypto ATM Scam Bill Introduced as Mass U.S. Closures Take Hold

The sudden drop in operational machines comes at a time when crypto ATMs in the U.S. are facing increased regulatory scrutiny. Since mid-2022, penalties and new rules for unlicensed operations have slowed the growth of the crypto ATM network. Despite 860 new ATMs being installed during February, the recent wave of closures has raised questions about the future of these machines in the U.S. market.

According to the data, there are 37,226 operational crypto ATMs worldwide today. The U.S. follows closely with 1,467 machines (3.9% of the global total), and Canada comes in third position with 3,085 ATMs (8.3%). Although the market dropped recently, the U.S. still holds the largest share of the cryptocurrency ATMs market.

Senator Durbin’s bill follows a recent case of fraud where one of his constituents fell victim to an operation using one of the machines. This highlights the growing threat posed by crypto ATM transactions, and the legislation mandates that operators take a more active role in responding to fraud, potentially shifting the regulatory landscape for crypto ATMs within the U.S.

Although the precise reason behind the recent closures remains unclear, the timing has sparked rumors of intensified compliance efforts. Some also suspect that regulatory concerns on the part of operators may be contributing to the closures.