More Than 600 Bitcoin ATMs Worldwide Have Been Reported Offline in the Last Two Months
- WBOYOriginal
- 2024-09-06 18:46:24334browse
The move comes as authorities are increasingly active in closing Bitcoin ATMs involved in extortion and fraud cases.
Over 600 Bitcoin ATMs Reported Offline Worldwide in Past 2 Months
In the last two months, more than 600 Bitcoin ATMs worldwide have been reported offline, with the biggest decline occurring in the United States. The move comes as authorities are increasingly active in closing Bitcoin ATMs involved in extortion and fraud cases.
According to data from Coin ATM Radar, cited by Cointelegraph, the global Bitcoin ATM network lost 435 machines in July and 182 machines in August in Q3 2024.
The United States saw the highest number of closures, with a reduction of 411 ATMs in July and 258 ATMs in August. This decline was the most significant among all countries.
The law enforcement effort is being driven by a rise in fraud cases that take advantage of the anonymous nature and speed of crypto transactions.
Bitcoin ATMs, which are similar to ordinary ATM machines, allow users to buy crypto assets such as Bitcoin using their debit or credit cards.
Local governments in various countries have begun to tighten regulations related to Bitcoin ATM operations.
For example, on Aug. 7, 2024, a government committee in Chico, California, discussed the need for stricter regulation of Bitcoin ATMs, even proposing that ATMs be treated like banks. The move came in response to a rise in fraud that uses crypto ATMs as the main tool.
Data from the United States Federal Trade Commission (FTC) shows that since 2020, there has been a ten-fold increase in fraud cases involving Bitcoin ATMs.
Losses caused by Bitcoin ATM fraud reached more than $110 million (around Rp1.69 trillion) by 2023, with age groups 60 years and over being the main target.
Not only in the United States, but firm action against crypto ATMs is also taking place in other countries.
On Aug. 20, 2024, the German Financial Supervisory Authority raided crypto ATMs, confiscating 13 machines from 35 different locations. German authorities warned that crypto ATMs could be a hotbed of criminal activity if strict Know Your Customer (KYC) controls are not enforced for transactions above €10,000 (around Rp171 million).
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