El Salvador Bitcoin ATM network to receive Lightning Network upgrade

November 8, 2023 Coin Telegraph

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Athena Bitcoin plans to integrate the Lightning Network into 100 of its machines in the next couple of months.

Athena Bitcoin, the company operating a state-owned chain of crypto ATMs in El Salvador, plans to integrate the Lightning Network into 100 of these machines in the next couple of months.

According to a press release from Nov. 7, Athena Bitcoin Global and Genesis Coin have already enabled the use of the Lightning Network technology across their technology infrastructure and will now begin implementing it, first in El Salvador and then across Latin America.

The Lightning Network is a layer-2 payment protocol that enables faster withdrawals and minimizes transaction fees. It also avoids recording the transaction data in the accounting of the main network. According to Coin ATM Radar, only 3.7% of the world’s crypto ATMs support the technology.

Athena has not yet responded to Cointelegraph’s request for comment.

Athena intends to switch to Lightning support at 100 of the state-owned Chivo ATMs it’s operating in El Salvador by December 2023. The remaining kiosks, including the Athena-branded ones, will follow in Q1 2024. There are currently 215 crypto teller machines in El Salvador.

The country’s leader, Nayib Bukele, who made Bitcoin (BTC) legal tender in 2021, has recently announced his run for reelection as president in 2024. “Five more [years], five more and not one step back,” Bukele said in a speech in front of thousands of Salvadorans. In April 2023, Bukele made a bold move to eliminate all taxes on technology innovations, which could entice more entrepreneurs and foreign capital to move into the country.

Some experts, like Gabor Gurbacs, strategy adviser at investment management firm VanEck, believe El Salvador can follow Singapore’s lead and become a financial center in the Americas.

Magazine: What it’s actually like to use Bitcoin in El Salvador

SBF claims innocence, contradicts other witnesses: Law Decoded

October 30, 2023 Coin Telegraph

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Sam Bankman-Fried was the final witness to take the stand after more than three weeks of testimonies in court.

Last week, the criminal trial of FTX founder and CEO Sam “SBF” Bankman-Fried continued in New York, with the man himself giving testimony as part of his defense. According to the SBF, he didn’t know any details about the creation of North Dimension, an alleged “shadowy entity” used to launder customer funds from the crypto exchange through Alameda Research. It was former chief regulatory officer Dan Friedberg who provided him with the papers setting up the firm, which he signed without question, SBF claimed.

Bankman-Fried denied knowing why crypto exchange FTX began moving user funds from a bank account with Alameda to North Dimension. He suggested that banks may have been more comfortable with North Dimension in order to avoid well-known hedge funds connected to crypto, such as Alameda.

The former CEO also suggested that Gary Wang, FTX’s former chief technology officer, had been partly responsible for creating the “allow negative” button for Alameda Research. The feature gave the crypto hedge fund the ability to trade more funds than it had available. “At the time, I wasn’t entirely sure what was happening,” Bankman-Fried said regarding Alameda’s line of credit. “I thought the funds were being held in a bank account or sent to FTX in stablecoins. If Alameda was keeping it, I figured it would be reflected as a negative number on FTX.”

Bankman-Fried’s claims partly or directly contradict the testimonies offered by Wang and former Alameda CEO Carline Ellison. Wang took the stand on Oct. 6, saying Bankman-Fried had ordered him and former FTX engineering director Nishad Singh to implement the “allow negative” feature in 2019. Ellison testified that she had wanted to step down as CEO of Alameda, but SBF asked her to stay, citing the risk of rumors about the firm’s financial health.

Californian lawmakers want to cap crypto ATM withdrawals at $1,000 daily

California legislators have proposed the Digital financial asset transaction kiosks bill, which seeks to impose a cap on crypto ATM withdrawals of $1,000 per day in light of growing scams. Additionally, starting in 2025, the law would limit operators’ fees to $5 or 15% (whichever is higher). The bill, if approved, would come into effect on Jan. 1, 2024. The bill was introduced after legislative members visited a crypto ATM in Sacramento and found markups as high as 33% on some crypto assets compared with their prices on crypto exchanges. On average, a crypto ATM charges fees between 12% and 25%, according to a legislative analysis.

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Cynthia Lummis calls for DOJ action against Binance and Tether

United States Senator Cynthia Lummis has called on the U.S. Department of Justice (DOJ) to consider charges against crypto exchange Binance following the terrorist group Hamas’ attack on Israel. In a letter to U.S. Attorney General Merrick Garland, Lummis and Arkansas Representative French Hill urged Justice Department officials to “reach a charging decision on Binance” and “expeditiously conclude” investigations of allegedly illicit activities involving Tether.

“We urge the Department of Justice to carefully evaluate the extent to which Binance and Tether are providing material support and resources to support terrorism through violations of applicable sanctions laws and the Bank Secrecy Act,” said Lummis and Hill.

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Crypto firms have breached new U.K. promo rules 221 times

The United Kingdom Financial Conduct Authority (FCA) claims that since the Oct. 8 crypto promotion rules came into place, firms are still failing to provide visible enough risk warnings and adequate information about risks and are making claims about the safety, security or ease of using crypto without highlighting the risks involved. Crypto-promoting firms have breached the new rules at least 221 times since coming into force, the FCA claims. While many of the FCA’s crypto-related alerts appear to be illegitimate schemes offering high-yield returns on crypto investments, the FCA has taken action against seemingly legitimate businesses as well.

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California bill aims to cap crypto ATM withdrawals at $1,000 per day to combat scams

October 23, 2023 Coin Telegraph

California bill aims to cap crypto ATM withdrawals at ,000 per day to combat scams

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A new legislative investigation found some crypto ATMs charging a premium as high as 33%, while a few ATMs had limits of up to $50,000.

California legislators have proposed a new bill titled “Digital financial asset transaction kiosks,” calling for a cap on crypto ATM withdrawals of $1,000 per day in light of growing scams. Additionally, starting in 2025, the law would limit operators' fees to $5 or 15% (whichever is higher). The bill, if approved, would come into effect on January 1, 2024.

The bill was introduced after legislative members visited a crypto ATM in Sacramento and found markups as high as 33% on some crypto assets compared to their prices on crypto exchanges. On average, a crypto ATM charges fees between 12% and 25%, according to a legislative analysis.

Government officials also found ATMs with limits as high as $50,000, prompting them to take regulatory measures to curb such high premiums and withdrawal limits. There are more than 3,200 Bitcoin (BTC) ATMs in California, according to Coin ATM Radar.

Democratic state Senator Monique Limón, who co-authored the proposed legislation, said the “new bill is about ensuring that people who have been frauded in our communities don’t continue to watch our state step aside" when there are real issues happening.

Another provision of the bill would require digital financial asset businesses to obtain a license from the California Department of Financial Protection and Innovation by July 2025

Crypto ATMs are a popular way for people to exchange cash for their choice of cryptocurrency, but have become a hub for scams and exploits because of the nature of transactions (i.e., hard cash). Unlike bank and wire transfers, this eliminates the possibility of leaving a trail.

Some residents have recently been caught up in such scams where the scammer has persuaded the victim to go to the nearby crypto ATMs and deposit cash for the crypto of their choice. The victims of the ATM scam have lauded the move and said the low transaction limit will give them time to realize if they are being duped, reported the LA Times.

On the other hand, crypto ATM businesses said the new bill would harm the small operators who must pay rent on their ATMs. The operators noted that the bill fails to address the core issue of the fraud and instead takes a punitive path focused on a specific technology. They warned such a move would shudder the industry and hurt consumers while doing nothing to stop bad actors.

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Bitbuy enters strategic partnership with Canadian crypto ATM firm Localcoin

September 18, 2023 Coin Telegraph

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Localcoin ATM will also be expanding its range of cryptocurrency offerings and launching a wallet app.

Canadian fintech corporation WonderFi, a firm backed by billionaire Kevin O’Leary, recently announced a strategic partnership between Bitbuy and cryptocurrency ATM provider Localcoin ATM.

The partnership, announced on Sept. 18, will shore up Localcoin’s crypto ATM offerings throughout Canada with Bitbuy’s exchange platform and the “deep liquidity” that comes with it, according to a press release from WonderFi.

PRESS RELEASE: Bitbuy Partners with Localcoin, Canada's Largest Bitcoin ATM Provider

Bitbuy's digital asset offering now powers nearly 50% of Canada's Bitcoin ATMs

MORE DETAILS: https://t.co/rqBDoHev1O
— WonderFi (@WonderFi) September 18, 2023

Bitbuy was the first cryptocurrency exchange to receive full regulatory approval in Canada. It was acquired by WonderFi in the January 2023 purchase of its parent company, First Ledger Corp., for close to $162 million (206 million Canadian dollars).

Localcoin purportedly operates the largest cryptocurrency ATM network in Canada. According to the press release, its 900 machines make up some 33% of the national total — which stands at approximately 2,700, making Canada second only to the United States in total adoption.

According to the press release, with this partnership, “Bitbuy’s digital asset services will cover nearly 50% of Canada’s Bitcoin ATMs.”

Last year, Ontario Securities Commission CEO Grant Vingoe said the regulator believed “more than 30 per cent of Canadians plan to buy crypto assets” in 2023, despite the recent exodus of numerous crypto companies from the market.

As Cointelegraph previously reported, while ByBit and Binance both made their exits from the Canadian cryptocurrency scene, citing regulatory changes, WonderFi CEO Dean Skurka told Cointelegraph last month that the increased regulatory clarity was bringing institutional investors to cryptocurrency and digital assets to Canada.

In a statement given to Cointelegraph, Localcoin ATM CEO Tristan Fong also announced the impending launch of a Localcoin Wallet app and an undisclosed “extended range” of cryptocurrencies available at Localcoin ATMs:

“We’re always evaluating opportunities to grow and enhance our offerings. As part of our aggressive Canadian & International network expansion, we’re also excited to announce upcoming features: an extended range of cryptocurrencies available at our ATMs, our Localcoin Wallet app, and the ability to sell bitcoins online for e-transfer or cash pick up at our locations. While full details are on the horizon, we’re committed to bringing crypto to the masses."

Hong Kong retains top crypto-ready position for two consecutive years

September 15, 2023 Coin Telegraph

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Hong Kong was crowned the best-prepared jurisdiction for widespread cryptocurrency adoption in 2023, retaining its crypto-readiness prowess for the second year in a row.

A study factoring in the existence and reach of crypto — via ATMs, businesses, accessibility and legality — revealed stiff competition among the 2022 leaders as Hong Kong, the United States and Switzerland held on to the top three positions.

*The most crypto-ready place in the world. Source: forexsuggest.com*

While Hong Kong grabbed the top spot with a crypto readiness score (CRS) of 8.36, the United States fell down a spot to third place after recording a fall of 6.5% in its CRS score — from 7.7 in 2022 to 7.25 in 2023. On the contrary, Switzerland’s CRS score jumped over 9% — from 7.5 to 8.18 — to rank 2nd worldwide.

As previously explained by Cointelegraph, factors such as crypto ATM installations, pro-crypto regulations, startup culture and a fair tax regime contribute to a country’s CRS. Slovenia, Canada and Australia managed to squeeze into the top 10 in 2023, as shown below.

*Five new countries make the top 10 in 2023 including Slovenia, Canada and Australia. Source: forexsuggest.com*

When it comes to the masses, the Dutch showed the most interest in crypto per person. The United States is home to the largest network of Bitcoin (BTC) ATMs, however, Hong Kong has the most crypto ATMs per square foot given its significantly smaller land mass.

Estonia, Singapore and Switzerland are among the busiest hubs for crypto and blockchain companies. One of the primary drivers that can make or break mass crypto adoption is taxes. There are 12 countries that impose a 0% tax on crypto for individuals — including Germany, Panama, and Portugal among others — who remain well-positioned to climb up the ranks in the coming years.

*Countries with 0% crypto tax. Source: forexsuggest.com*

In the US, New York became the most crypto-ready US state after recording CRS of 9.80 owing to numerous crypto-related legislation and a huge number of crypto and blockchain businesses in operation.

India leads the global crypto adoption in 2023, a recent Chainalysis report revealed. Other lower middle-income (LMI) nations, including Nigeria and Thailand, bagged the second and third spot in the report.

*The 2023 global crypto adoption index top 20. Source: Chainalysis*

In addition to leading grassroots adoption, India has also become the second-largest crypto market by raw estimated transaction volume globally, ahead of other major economies.

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KC Fed tracks healthy growth of crypto ATM industry despite predatory operators

August 31, 2023 Coin Telegraph

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The crypto ATM industry gets little attention relative to its size and issues. It appeals to users with motivations ranging from convenience to investment.

The crypto ATM business is thriving in the United States, despite criticism for illegal or predatory behavior, according to a report released by the Federal Reserve Bank of Kansas City. Crypto ATMs have a growing customer base that could sometimes benefit from better education about crypto, the report concluded.

Crypto ATMs convert Bitcoin (BTC) and often other cryptocurrencies or stablecoins into or out of fiat. Like traditional ATMs, crypto ATMs are usually placed in high-traffic locations and charge a fee for their service. That fee is one of the sources of controversy about crypto ATMs, Kansas City Fed lead payments specialist Franklin Noll wrote in the report. The average fee to use a crypto ATM is 15-16%, and operators may set an unfavorable conversion rate, effectively driving fees up to 20% in many cases.

The report identified four user groups for crypto ATMs. Some were cash users who may be unbanked, possibly by preference. Older people who found ATM technology more familiar than that of crypto exchanges made up another segment. Some users were motivated by the convenience of using an ATM, and others found ATMs provide greater relative anonymity.

Crypto ATMs require identification (“such as a phone number,” the report stated). Crypto ATMs are money-servicing businesses, so they are subject to state and federal regulation, including Anti-Money Laundering. This can be a major source of overhead costs for the operators, although regulatory compliance is sometimes low in the industry, the report stated.

Minority groups and immigrants make up a significant user group for the ATMs. Immigrants tend to buy crypto through ATMs to use in person-to-person transactions such as remittances:

“One explanation for this usage may be that the cost of using cryptocurrency obtained from a BTM [Bitcoin ATM] in a remittance may be comparable to the cost of sending a remittance via third parties using cash, when factoring in convenience, time savings, and transactional certainty and speed.”

The crypto ATM industry is often accused of predatory inclusion, that is, “disguising high-risk, high-cost services as ways for the financially disadvantaged to gain entry to lucrative financial investments.” It added, “[T]he losses to uneducated crypto investors using BTMs to purchase volatile cryptocurrencies could be substantial.”

Bitcoin ATMs, which convert cash to cryptocurrency, have garnered criticism for their association with illegal or financially predatory behaviors. Some consumers are using them anyway. https://t.co/gIBEHcCjPW #PSRbriefing pic.twitter.com/OiMmfmj5LX
— Kansas City Fed (@KansasCityFed) August 30, 2023

The report also cited Chainalysis data showing that victims of scams moved $345 million through crypto ATMs in 2022. “The industry’s role in facilitating money laundering and scams may pose significant risks to the public,” the report concluded.

Industry statistics are rare and unreliable, but it is clearly growing after a COVID-related industry downturn, according to the report. Operator Bitcoin Depot went public in July and saw a significant revenue jump.

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Bipartisan bill to regulate DeFi, crypto security risks introduced into US Senate

July 19, 2023 Coin Telegraph

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The bill was introduced in the evening and has not been published yet, but it is already causing a stir. Crypto Twitter calls it a “nonstarter.”

United States Sen. Jack Reed sponsored a bipartisan bill introduced into the Senate on July 18 that would tighten Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations and sanctions requirements for decentralized finance (DeFi). According to a news release on Reed’s website, the bill is titled the Crypto-Asset National Security Enhancement and Enforcement (CANSEE) Act.

The bill would subject DeFi operations to the same requirements as “other financial companies, including centralized crypto trading platforms, casinos, and even pawn shops.” The bill would make “anyone who controls that project” liable for the use of the DeFi service by sanctioned persons. Furthermore:

“If nobody controls a DeFi service, then — as a backstop — anyone who invests more than $25 million in developing the project will be responsible for these obligations.”

The bill would also “modernize” Treasury Department AML powers by extending them beyond the traditional financial system. According to the statement:

“As new technologies like cryptocurrency increasingly enable new ways to conduct financial transactions, it is critical to extend Treasury’s authority to crack down on illicit financial activity that may occur outside the banking sector.”

The bill also set new requirements for operators of crypto kiosks (or ATMs) to prevent their use in money laundering. Kiosk operators would be required to verify the identities of both counterparties in a transaction.

The bill has not been published at the time of writing. A member of Reed’s staff contacted by Cointelegraph could not say when the bill would be published. A text purporting to be the draft bill has been posted on GitHub.

Case in point:

The definition of "control" is so broadly worded that it's meaningless. No thresholds, no specifics, just "control," as determined by the Secretary of the Treasury. Completely and utterly unworkable.https://t.co/rVk26MJwfA
— Meat (,) (@MeatEsq) July 19, 2023

Crypto Twitter has wasted no time in condemning the bill. One commenter called it “an existential threat to DeFi” and a “nonstarter.” Another said that “imposing control responsibility for a $25mm investment is going to chill VC investment into DeFi b/c passive tokenholding does NOT equal control.”

Sens. Mike Rounds, Mark Warner and Mitt Romney are cosponsors of the bill. Reed and Warner were cosponsors of a bill introduced by Sen. Elizabeth Warren — the Digital Asset Sanctions Compliance Enhancement Act — in March 2022.

Magazine: US enforcement agencies are turning up the heat on crypto-related crime

UK FCA shuts down 26 crypto ATMs following coordinated investigation

July 11, 2023 Coin Telegraph

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The FCA — along with other law enforcement agencies — investigated 36 crypto ATM locations using powers under the Money Laundering Regulations 2017.

The United Kingdom’s financial regulator, the Financial Conduct Authority (FCA), “disrupted” 26 of the 34 cryptocurrency ATMs it visited and inspected since the start of 2023.

On Feb. 14, the FCA gave an ultimatum to all crypto ATM operators in the UK — to either comply with regulations or wind down illegal operations. Following the warning, the FCA — along with other law enforcement agencies — investigated 36 crypto ATM locations using powers under the Money Laundering Regulations 2017.

#Crypto ATMs operating without FCA registration are illegal. The action we’ve taken over the past few months and wider work shows that we will act to stop illegal activity. #cryptocurrency https://t.co/KnMhiKAt21
— Financial Conduct Authority (@TheFCA) May 5, 2023

Speaking against the use of all crypto ATMs, Steve Smart, joint executive director of enforcement and market oversight at the FCA, stated:

“If you use a crypto ATM in the UK, you are using a machine that is operating illegally and you may be handing your money over to criminals.”

Smart further clarified that victims of scams involving the crypto or Bitcoin (BTC) ATMs “will not be protected” by the government or the operator of the machines. Out of the lot, 18 locations were inspected in May and June, right when the FCA publicly announced the commencement of the inspection drive.

All crypto exchanges and ATMs must be registered with the FCA and comply with the UK Money Laundering Regulations. On July 8, Clive Police Department released a report detailing how a crypto scammer, called up an unsuspecting victim pretending to represent law enforcement and managed to steal $6,000 while threatening an arrest warrant.

Scammers utilize fear tactics and impersonate law enforcement officials to deceive unsuspecting individuals into transferring funds through crypto ATMs. However, it is important to note that law enforcement agencies never contact individuals demanding payment over the phone or via crypto.

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Crypto ATM firm Bitcoin Depot will go public on Nasdaq starting July 3

June 30, 2023 Coin Telegraph

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The special purpose acquisition company deal, first reported in August 2022, cost $885 million and is expected to allow investors exposure to Bitcoin Depot’s common stock.

Bitcoin Depot, one of the largest cryptocurrency ATM firms in the United States, has announced the closing of a merger deal allowing the company to go public.

In a June 30 announcement, fintech firm GSR II Meteora Acquisition Corporation said its stockholders had approved the merger for the firm to act as a special purpose acquisition company for Bitcoin Depot. The deal, first reported in August 2022, cost $885 million and is expected to allow investors exposure to Bitcoin Depot on the Nasdaq starting July 3.

$GSRM & Bitcoin Depot deal closing PR. Will trade as $BTM on Monday, July 3.https://t.co/tlimnZdQqF
— SPAC Track (@SPACtrack) June 30, 2023

According to Bitcoin Depot founder and CEO Brandon Mintz, the merger deal was aimed at supporting “numerous growth opportunities” and promoting the adoption of Bitcoin (BTC) in North America. Investors will be able to find shares of Bitcoin Depot under the ticker symbols BTM and BTMWW for its common stock and public warrants, respectively.

The announcement came amid regulatory scrutiny of firms in the U.S. offering crypto products or services. The Securities and Exchange Commission filed lawsuits against exchanges Binance and Coinbase for alleged unregistered securities offerings. However, investment vehicles with exposure to crypto also seem to be on the rise following BlackRock filing an application in June to list a spot Bitcoin exchange-traded fund.

Founded in 2016, Bitcoin Depot is one of the biggest crypto ATM firms in North America, with more than 9,130 locations, according to its website. In May, fellow ATM provider Bitcoin of America announced it would shutter operations in Connecticut following the state’s Department of Banking saying the firm didn’t have the proper licensing.

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Economics of Bitcoin ATM market could hinder wider adoption

June 7, 2023 Coin Telegraph

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Bitcoin of America’s shutdown in Connecticut highlights the obstacles for companies operating crypto ATMs.

As the digital asset market continues to evolve, the use of cryptocurrency ATMs grows with it. Over the past decade, nearly 40,000 cryptocurrency ATMs have popped up worldwide.

Bitcoin (BTC) ATM service provider, Bitcoin of America, had carved out a slice of the market but recently closed shop in the United States State of Connecticut due to a lack of proper licensing.

The Connecticut Department of Banking (DoB) issued a cease and desist order against the company, accusing it of operating unlicensed crypto ATMs in the state. But the allegations didn’t stop there; the firm was also accused of facilitating scams by allowing transactions related to fraudulent activities.

In response to the challenges, Bitcoin of America released a statement claiming it would immediately halt all of its operations in Connecticut. While the decision marked the end of the company’s presence in the state, it also underscored the regulatory hurdles faced by crypto ATM operators, particularly in the United States.

The closure also sent ripples across the crypto community, leading many industry observers to question the long-term efficacy and utility of these machines.

Connecticut closure explained

Due to the nascency of the cryptocurrency industry, marrying digital currencies with conventional financial structures — as in the case of crypto ATMs — requires intricate regulatory supervision. This is particularly true in Connecticut, where the DoB oversees ATMs under the Money Transmission Act.

The act requires that any service involving the transfer of money, including the conversion of traditional currency to cryptocurrency, must secure a money transmitter license.

On May 22, the Connecticut DoB claimed that Bitcoin of America had not secured the necessary license to operate Bitcoin ATMs in the state. It further stated that four Connecticut Bitcoin ATM users were scammed out of tens of thousands of dollars via Bitcoin of America’s kiosks.

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The DoB stated: “Bitcoin of America, following the consent order, compensated these consumers with a total of $86,000. After facing criminal charges, Bitcoin of America is in the process of ceasing its operations in Connecticut.”

In a separate incident in March, state officials in Ohio seized 52 Bitcoin of America ATMs, as authorities suspected scammers were using the kiosks.

Operating crypto ATMs is harder than it looks

Jason Grewal, chief legal officer for Web3 security firm Sys Labs, told Cointelegraph that running a crypto ATM involves much more than just acquiring a license.

Operators in the U.S. must adhere to Anti-Money Laundering (AML) rules set by the Financial Crimes Enforcement Network, comply with the Bank Secrecy Act’s Know Your Customer (KYC) norms, and conform to the Internal Revenue Service’s requirements for reporting crypto transactions.

In Grewal’s opinion, such complexities could play a significant role in the waning popularity of these machines. In March alone, a staggering 3,627 cryptocurrency ATMs went offline, marking the most significant monthly decrease in the history of crypto ATMs. He said:

“Considering the shifting popularity of crypto ATMs, various factors seem to be at play. For one, the transaction fees imposed by these machines often exceed those on online exchanges, posing a deterrent for heavy users. Additionally, the necessity to satisfy complex regulations and licensing requirements can be challenging and potentially overshadow the perceived advantages of in-person crypto transactions.”

Further tipping the scales away from crypto ATMs are alternatives like decentralized exchanges (DEXs) and decentralized finance (DeFi) platforms.

Lower transaction costs, universal access, superior privacy and a broader range of supported cryptocurrencies make these projects increasingly compelling to many people. DeFi platforms also offer features such as staking, yield farming and borrowing — services typically absent from crypto ATMs.

Grewal believes that moving forward, crypto ATM operators will have to innovate and change to better serve the evolving needs of their consumers.

Robert Quartly-Janeiro, chief strategy officer for cryptocurrency exchange Bitrue, told Cointelegraph that four primary companies currently dominate the crypto ATM market, something which needs to change for the market to grow and adoption to increase.

Moreover, he believes that the physical location of crypto ATMs is also a major factor when it comes to engaging customers. He added:

“Ultimately, one of the key pillars for the mass adoption of crypto remains the ability to sell crypto for fiat currencies in-country. The landscape has changed slightly, so the need for crypto ATMs has changed economically, geographically, psychologically, as well as from an infrastructural standpoint.”

The economics of crypto ATMs

Most crypto ATMs in operation today run in collaboration with established companies like ChainBytes, LibertyX, CoinMe and others, which allow independent businesses to become “operators,” “partners,” or “hosts” for these machines.

The return on investment depends on several factors, including the location of the business (e.g., commercial district, high-traffic area); the number of daily transactions; the average transaction size; the total expected revenue from transaction fees; and the marketing strategy to promote the crypto ATM in question.

According to crypto ATM firm Chainbytes, a single Bitcoin ATM can earn up to $3,000 monthly, with gross monthly revenues of $30,000.

Operating a crypto ATM presents several challenges as well. Regulatory complexities require operators to navigate often unclear laws, obtain necessary licenses, and comply with AML and KYC regulations. Security risks, both physical and digital, necessitate robust protective measures, adding to high operational costs that include machine maintenance and cash management.

The inherent volatility of cryptocurrencies can also impact profitability, with significant value fluctuations potentially leading to financial losses. Operators must also maintain sufficient cryptocurrency and cash reserves to meet customer demand, as shortages could harm their reputation and business.

Who’s leading the global crypto ATM race?

Since the first crypto ATM debuted in a Vancouver coffee shop in 2013, the sector has evolved dramatically. Today, there are around 35,000 machines globally, transforming how people interact with digital currencies.

*The United States has the lion’s share of crypto ATMs globally. Source: Coin ATM Radar*

The U.S. houses roughly 30,000 crypto ATMs, accounting for 86% of all such machines worldwide.

Canada’s crypto ATM scene has also flourished over the last few years. As of Q1 2023, the country hosts 2,744 machines, while its European compatriot Spain boasts around 286 machines.

Down under, Australia has also been making waves. After adding 99 ATMs in late 2022, it leapfrogged El Salvador and Poland to become the fourth-largest crypto ATM hub with around 473 kiosks.

The future of crypto ATMs

Despite the many hurdles impeding the growth of the crypto ATM market, the space is expected to grow significantly in the coming years. The market — valued at $71.9 million in 2021 — is projected to rise to $5.45 billion by 2030.

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However, for the sector to thrive, it will be crucial for operating companies to obtain regulatory clarity. Physical and digital security measures must also be enhanced to protect the machines and the transactions they facilitate. This includes robust cybersecurity measures to prevent digital hacks and adequate physical security to deter theft attempts.

Finally, efforts must be made to reduce the operational costs of running these machines. This could involve developing more cost-effective kiosks, optimizing cash management processes and exploring alternative business models. Thus, as we head into a future driven by crypto-enabled tech, it will be interesting to see how the future of the crypto ATM market continues to evolve and grow.

ATM

Californian lawmakers want to cap crypto ATM withdrawals at $1,000 daily

Cynthia Lummis calls for DOJ action against Binance and Tether

Crypto firms have breached new U.K. promo rules 221 times

Connecticut closure explained

Operating crypto ATMs is harder than it looks

The economics of crypto ATMs

Who’s leading the global crypto ATM race?

The future of crypto ATMs

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