334 Bitcoin ATM Go Offline Globally as BTC Price Plummets

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As a researcher with a background in cryptocurrencies and blockchain technology, I find the recent trend of declining Bitcoin ATMs quite concerning. The rapid decrease in the number of active machines within less than two months is alarming, especially when considering the significant role these ATMs play in making crypto more accessible to the general public.

The decrease in Bitcoin‘s (BTC) value has had a substantial impact on various sectors of the cryptocurrency world, including the number of Bitcoin ATMs.

Unfortunately, these sectors are experiencing a significant drop in their key performance indicators. For instance, the number of active Bitcoin Automated Teller Machines (ATMs) globally has declined noticeably within the past 40 days. Specifically, approximately 334 Bitcoin ATMs have ceased operations during this period, based on data from Cointelegraph’s report.

July Sees Massive Exit of Bitcoin ATMs

In June, a total of 107 machines were taken offline, marking the end of a ten-month trend of continuous growth in net installations. The number of crypto ATMs decommissioned in July has already reached 227, indicating a significant uptick in Bitcoin ATM removals from the network. Over half of these removed ATMs were located in the United States and Europe.

While Spain and Australia are actively increasing the number of Bitcoin ATMs they offer, the US and EU seem less focused on expansion. The US currently houses a significant proportion of these machines – around 82.6% up until recently. However, following the removal of 182 ATMs in late June and an additional 239 in early July, this percentage has decreased slightly.

Over a five-day span, Europe saw the deactivation of 29 Bitcoin ATMs, leaving a remaining count of 1,589 units. On the positive note, Australia introduced 77 new Bitcoin ATMs to the worldwide network over the same timeframe.

US, UK, and Europe Crackdown on Crypto

There are rumors that the decrease in the number of crypto ATMs may be due to a worldwide clampdown by regulators on digital currencies. Previously, regulatory bodies have probed into the activities of crypto ATM operators and uncovered instances of scams, ultimately leading them to shut down their businesses.

About a year ago, I found myself in the unfortunate position of having to deal with the aftermath of the Financial Conduct Authority (FCA) taking down 26 cryptocurrency Automated Teller Machines (ATMs) scattered across the UK. The majority of these machines were situated in London, Leeds, Sheffield, Nottingham, and Exeter. From my perspective as an investor, it was a disappointing turn of events. However, I can understand the FCA’s rationale behind their actions. They were working to maintain the integrity of the financial system by cracking down on potential illicit activities linked to unregulated crypto transactions.

Before the shutdown of the 26 cryptocurrency automated teller machines (ATMs), the Financial Conduct Authority (FCA) notified their operators that adherence to regulations was essential for them to keep functioning.

Using a cryptocurrency ATM in the UK involves interacting with an machine that is potentially breaking the law. Criminals may be managing this device, putting your funds at risk if something goes awry. Unfortunately, there’s no protection for you in such cases, and you could end up losing your money. This warning was issued by Steve Smart, who is the Joint Executive Director of the Enforcement and Market Oversight unit at the Financial Conduct Authority (FCA).

Additionally, he pointed out that interacting with the Bitcoin ATM operators often proves challenging. This challenge added fuel to the regulatory anxieties, ultimately resulting in restrictions.

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2024-07-05 17:53