03.03.2025 15:13
Following Illinois Senator Dick Durbin's proposed legislation to prevent crypto ATM fraud, over 1,200 crypto ATMs in the U.S. went offline. This incident has raised concerns about the country's crypto security.
Cryptocurrency ATMs in the US have faced a significant blow following a new legislative proposal. Illinois Senator Dick Durbin introduced a bill aimed at combating fraud, resulting in over 1,200 ATMs going offline during the first weekend of March. This situation has brought security concerns and regulatory requirements in the US cryptocurrency market back into focus.
Significant Drop in ATMs
The cryptocurrency sector in the US is facing a new wave of regulation. The bill proposed by Illinois Senator Dick Durbin on February 25 includes strict measures against fraud incidents occurring specifically at cryptocurrency ATMs. Durbin's proposal, citing the fraud victimization of one of his constituents, has caused a significant stir in the industry.
The introduction of the bill coincided with an interesting period. In February, 860 new cryptocurrency ATMs had been launched in the US. However, in the first three days of March, there was a net decrease of 1,100 machines in the global Bitcoin ATM network. Notably, 1,233 of this decline occurred within the US.
According to Coin ATM Radar data, this sharp decline in the US was partially balanced by new devices established in Europe, Canada, Spain, Poland, Australia, and Switzerland. Nevertheless, a significant decline in the total number was observed.
The US remains the clear leader in the global cryptocurrency ATM market. As of March 3, 2025, there are 29,731 cryptocurrency ATMs operating in the country, accounting for 79.9% of the global market. Canada ranks second with 3,085 ATMs (8.3%), while Australia is in third place with 1,467 ATMs (3.9%).
The cryptocurrency ATM sector is experiencing stagnation due to increasing pressure from regulatory authorities and inspections targeting unregistered businesses. Since mid-2022, the growth rate of cryptocurrency ATMs has significantly slowed down.
Durbin's proposed bill imposes significant obligations on cryptocurrency ATM operators. The draft requires operators to clearly warn users about fraud risks. The bill also envisions measures to minimize fund losses in potential fraud cases and grants law enforcement greater authority to track illegal transactions.
Experts state that these regulations will raise security standards in the industry and contribute to preventing user victimization. On the other hand, industry representatives express concerns that overly restrictive regulations could hinder technological innovation.