600 Bitcoin ATMs Shut Down Globally Amid Rising Scams
- Over 600 Bitcoin ATMs were shut down worldwide in July and August 2024 due to rising fraud and scam concerns.
- Scams involving Bitcoin ATMs have surged, costing victims over $110 million in 2023.
- Authorities are stepping up enforcement on Bitcoin ATMs, with countries like Germany seizing machines.
600 Bitcoin ATMs Closed Globally Amid Fraud Concerns
In the past two months, more than 600 Bitcoin ATMs were taken shutdown worldwide, with the United States leading the closures. As per the data from Coin ATM Radar, 411 machines were extracted in the U.S. in July, followed by another 258 in August.
This wave of shutdowns is part of a global action by law enforcement to crackdown on the increasing use of Bitcoin ATMs in scams and extortion.
Bitcoin ATMs permit users to buy cryptos like BTC using cash or debit cards. However, their rapid and unknown transactions have drawn criminals who exploit these machines for illegal activities.
Growing Scam Concerns Prompt Action
The rise in scams related to these ATMs is quite worrying. The Federal Trade Commission (FTC) said that in 2023, losses from Bitcoin ATM scams topped $110 million.
Most victims tend to be older folks. People aged 60 and up are three times more likely to fall for these tricks. Scammers often fool victims into sending money through these ATMs by pretending they’ll get huge returns or services.
Despite efforts by some operators to reduce fraud—such as Bitcoin Depot, which runs 8,512 ATMs globally—scams continue. Bitcoin Depot has introduced warnings and screen prompts to alert users about potential scams, but the impact remains limited.
Global Crackdown Expands
Around the globe, governments are getting stricter with regulations for Bitcoin ATMs. In August 2024, Germany’s Federal Financial Supervisory Authority took down 13 machines as a move against illegal activities like money laundering. They highlighted how important it is to know your customer (KYC) when it comes to big transactions so misuse can be avoided.
Singapore has gone even further by banning Bitcoin ATMs completely. The Monetary Authority of Singapore set up tough regulations not just for user protection but also to limit cryptocurrency ads seen by everyone.
Conclusion
As of September 2024, there are still 38,790 crypto ATMs working globally, with the U.S. and Canada making up a whopping 91% of that number. This crackdown on Bitcoin ATMs shows how crucial oversight has become as scams & fraud grow more common. Major players like Bitcoin Depot will probably face more pressure from tighter regulations and law enforcement’s close watch.
Also Read: Ethereum ETF Launch by Monochrome: What Next for ETH Price?
