According to a chart released by Crypto ATM Radar, more than 400 Bitcoin ATMs have gone offline in the first two months of 2023.
In January, 289 machines stopped operating, and in February, 123 more were taken offline, making a total of 412 non-functional crypto ATMs over two consecutive months.
It’s been almost a decade since the first Bitcoin ATM was introduced, operated by Robocoin at a coffee shop in Vancouver, Canada. Since then, the number of Bitcoin ATMs worldwide has increased significantly. Coinatmradar reports that the total number of ATMs globally is almost 40,000.
The chart above shows that since 2014, there has been a significant increase in the number of Bitcoin ATMs installed worldwide, with over 1,000 machines installed every month from December 2020 to January 2022. These machines have actively processed millions of transactions, converting crypto to fiat.
The first decline of Bitcoin ATMs was recorded in September 2022, when 796 machines were pulled off the global network due to a stretched bear market, lack of regulatory clarity, market uncertainty, and other factors caused by geopolitical tension. During this period, there was a significant drop in the net number of installed machines from 38,776 to 37,980.
Although the recent decrease was not as severe as the one in September 2022, it is still a new low because it is the first to have occurred over a two-month period.
Bitcoin ATMs are crucial to the widespread adoption of Bitcoin and other cryptocurrencies. Thus, crypto ATM service providers must seek less expensive ways of doing business to lower operational costs, such as the $3 million annual software licensing charge.
In related news, Huobi, a cryptocurrency exchange, recently partnered with Solaris, a European financial services provider, to create a bitcoin-to-fiat debit card. Customers in the European Economic Area (EEA) will be able to use the card beginning in the second quarter of 2023. Huobi users will be able to utilize their digital assets at points of sale all across the world thanks to a Visa-approved system.
Last month, the Financial Conduct Authority (FCA), which is responsible for regulating financial services in the UK, conducted an investigation into unregistered cryptocurrency ATMs. The FCA targeted several locations in and around Leeds City and the West Yorkshire Police cyber unit on suspicion of housing illegally operated crypto ATMs.
The FCA revealed that no cryptocurrency ATM business in the UK is registered with them. The regulator had declared that all cryptocurrency exchange providers, including those operating cryptocurrency ATMs, must register with the FCA and comply with UK money laundering laws.
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