By
Anisha Pandey
June 14th, 2024
Law enforcement agencies in the US have recently been clamping down on Bitcoin ATMs, especially those frequently used for extortion and scams.
The number of active Bitcoin ATMs worldwide is on a decline and it is the first time this has been happening since July 2023. However, the reason why the 10-month-long global crypto ATM growth streak has ended so abruptly might not be farfetched.
Law Enforcement Crackdown in the US Sparks Worldwide Decline in Bitcoin ATMs
The United States and Canada host the largest share, about 91%, of the world’s Bitcoin ATM network. That is according to data from CoinATMRadar. The US is home to about 30,960 (82.6%) machines, while Canada hosts 2,989 (7.7%) machines.
However, law enforcement agencies in the US have recently been clamping down on these Bitcoin ATMs, especially those frequently used for extortion and scams.
According to records, no less than 300 Bitcoin ATMs have gone offline so far this month. As of publication, the US market has lost 302 Bitcoin ATMs, while 28 machines have gone offline in Canada.
As Coinspeaker recently reported, Australia hit the milestone of 1,000 Bitcoin ATMs to become their third-largest host. Since then the country has added about 41 machines, bringing its total network to 1,041 machines. This accounts for 2.8% of the global total. So, despite the reductions in North America, the new installations in Australia, Switzerland, and various European countries have provided some balance to the global network. This means that, overall, Bitcoin ATMs worldwide have seen a net decline of 280.
Implications of the Decline
The recent decline in Bitcoin ATM numbers raises questions about the future stability of the global network, particularly if law enforcement crackdowns intensify. However, the ongoing growth in other regions suggests that the overall demand for Bitcoin ATMs remains strong. As Australia may have just confirmed, the diversification of Bitcoin ATM locations could help stabilize and potentially rejuvenate the network in the coming months.
As the crypto market continues to evolve, so too will the infrastructure supporting it. Therefore, the global Bitcoin ATM space is likely to continue adapting to regulatory pressures while also expanding in regions with growing demand for cryptocurrency services.