Bitcoin ATMs Face Tougher Regulations in the U.S. and UK

Over 1,200 Crypto ATMs Shut Down in the U.S. Amid Regulatory Crackdown 🏧🚨

The U.S. crypto ATM sector just took a major hit. Over 1,200 machines were shut down during the first weekend of March, following a proposed bill by Illinois Senator Dick Durbin aimed at curbing fraud in Bitcoin ATM transactions. According to Coin ATM Radar, between March 1 and March 3, the global crypto ATM count dropped by 1,100 units, with the majority of losses occurring in the United States. Meanwhile, other regions, including Europe, Canada, Spain, Poland, Australia, and Switzerland, saw new installations.

Durbin’s Bill: Stricter Regulations Ahead? 🏛️📜

Senator Durbin’s proposed legislation introduces:
✅ Mandatory fraud warnings on crypto ATMs
✅ Stronger protections to prevent financial losses
✅ Increased oversight of illicit transactions

This move comes after a complaint from a constituent who lost money to scammers using a Bitcoin ATM.

U.S. Crypto ATM Market: Still the Largest 🌍💰

Despite the shutdowns, the United States still dominates the global crypto ATM industry:

• 29,787 crypto ATMs (nearly 80% of the world’s total)
• Canada follows with 8.3%
• Australia holds 3.9%

However, the growth of crypto ATMs has been slowing since 2022 due to regulatory crackdowns and concerns over illegal operators.

Crypto ATM Crackdowns Extend Beyond the U.S. 🇬🇧⚖️

The UK’s Financial Conduct Authority (FCA) recently secured its first-ever conviction for illegal crypto ATM operations:

• Olumide Osunkoya, 46, was convicted of running unregistered Bitcoin ATMs in multiple locations.
• His machines processed over £2.5 million ($3.2 million) in transactions.
• He was also found guilty of forging identity documents to bypass regulatory checks.
• Sentenced to four years in prison, with the FCA seeking to seize his illegal profits (30%-60% per transaction).

The FCA called this case a "landmark moment" for financial regulation in crypto.

Industry Pushback Against Overregulation 🗣️⚠️

Not everyone is on board with these crackdowns. One Trading CEO Joshua Barraclough criticized the FCA’s approach, arguing that strict regulations could stifle innovation and push legitimate crypto businesses out of the market.

TL;DR: Crypto ATM Shutdowns Shake the Industry 🔍💸

• 1,200+ crypto ATMs shut down in the U.S. amid regulatory pressure.
• Senator Durbin’s bill pushes for fraud warnings & stricter oversight.
• The U.S. still holds 80% of the global crypto ATM market.
• The UK convicted its first illegal crypto ATM operator, sentencing him to 4 years in prison.
• Industry leaders fear excessive regulation could kill innovation.

The crackdown raises a key question: Will governments regulate crypto ATMs responsibly, or are we looking at an outright industry squeeze? 🤔