ATM

More than 3,600 Bitcoin ATMs went offline to record largest monthly decline

With 3,627 crypto ATMs going down last month, March 2023 becomes the month with the largest monthly decline of crypto ATMs.

Contradicting the growing global Bitcoin (BTC) adoption rate, physical ATMs dedicated to fiat-crypto conversions are on the decline. In March alone, 3,627 crypto ATMs were removed from the network, bringing down the total ATMs to 33,727.

In the decade since the first Bitcoin ATM was launched on Oct. 29, 2013, the net change of cryptocurrency machines installed and removed monthly remained positive most times — implying that total crypto ATMs worldwide were steadily increasing. However, the trend is reversing, according to data from Coin ATM Radar.

*Net change of cryptocurrency machines number installed and removed monthly. Source: Coin ATM Radar*

As shown above, net crypto ATM installations declined for four months between September 2022 and March 2023. However, with 3,627 crypto ATMs going down last month, March 2023 stands out as the month with the largest monthly decline.

*Number of bitcoin machines installed over time. Source: Coin ATM Radar*

The chart above shows the number of Bitcoin machines installed over time, revealing the sudden drop in the total crypto ATMs. The significance of this reduction seems enormous, considering that the highest number of ATMs installed in a month was 2,048 — back in January 2021.

*The number of cryptocurrency machines installed per each top manufacturer over time. Source: Coin ATM Radar*

On the bright side, April broke the three-month-long downtrend by recording 37 crypto ATM installations on April 1. Current market leaders in manufacturing crypto ATMs are General Bytes, BitAccess and Genesis Coin.

After losing customer funds in a “security incident” in March that saw its customers’ hot wallets accessed, General Bytes promised to reimburse the losses.

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On March 17-18th, 2023, GENERAL BYTES experienced a security incident.

We released a statement urging customers to take immediate action to protect their personal information.

We urge all our customers to take immediate action to protect their funds and https://t.co/fajc61lcwR…

— GENERAL BYTES (@generalbytes) March 18, 2023

“We have taken immediate steps to prevent further unauthorized access to our systems and are working tirelessly to protect our customers,” General Bytes said in a statement.

Bybit introduces Mastercard-powered debit card days after halting USD transfers

Bybit is set to roll out Mastercard-powered debit cards, allowing users to pay for goods and services with cryptocurrency holdings.

Bybit will launch a new debit card allowing users to make payments and withdraw cash using cryptocurrency holdings.

The Bybit card will operate on the Mastercard network, and will allow fiat-based transactions by debiting cryptocurrency balances when used to pay for goods and services. The service begins with the launch of a free virtual card for online purchases, while physical debit cards are set to be available in April 2023.

The service will work with Bitcoin (BTC), Ether (ETH), Tether (USDT), USD Coin (USDC) and XRP (XRP) balances on user accounts. Payments will automatically convert the balances of these initial cryptocurrencies into euros or pounds, depending on a user’s country of residence.

ATM withdrawals and global payments will be limited to aggregated cryptocurrency holdings of a user’s Bybit account. The cards are issued by London-based payments solutions provider Moorwand.

The roll-out of Bybit’s virtual and physical debit card offering comes days after the Dubai-based exchange announced it would be halting U.S. dollar bank transfers. The suspension of dollar deposits and withdrawals was pinned on “service outages” by one of its processing partners.

Bybit users can continue to make USD deposits using Advcash Wallet and credit cards, while users are urged to carry out any pending U.S. dollar wire withdrawals by March 10.

United States-based crypto exchanges and businesses were affected when Silvergate Bank announced the discontinuation of its digital assets payment network on March 4.

Meanwhile, a report at the end of February 2023 suggests that Mastercard and Visa would hold off on announcing or embarking on further direct partnerships with the cryptocurrency and blockchain industry.

Mastercard has been exploring payment options in USDC through new partnerships, while Visa has hinted at plans to allow customers to convert cryptocurrencies into fiat on its platform in 2023.

Bitcoin ATM firm profited from crypto scams via unlicensed kiosks: Secret Service

52 crypto kiosks were seized in the investigation led by the U.S. Secret Service’s Cyber Fraud and Money Laundering Task Force.

A Bitcoin (BTC) technology firm and its executives have been indicted for allegedly operating unlicensed crypto kiosks in Ohio which knowingly benefited from victims of cryptocurrency scams.

S&P Solutions, which operated as Bitcoin of America, along with three of its executives are facing charges of money laundering, conspiracy, and other crimes connected to the operation of more than 50 unlicensed crypto kiosks in the state.

A Cuyahoga County grand jury returned the indictment on Mar. 1 against the firm, the owner and founder, Sonny Meraban, manager Reza Meraban, and company attorney William Suriano. The trio was arrested last week and search warrants were executed on their residences in Florida and Illinois.

3 men, 1 business charged in cryptocurrency scam; avoid Bitcoin of America ATMs, Cuyahoga Co. prosecutor says https://t.co/LaR1L2E1yH

— News 5 Cleveland (@WEWS) March 2, 2023

According to the prosecuting attorney Andrew Rogalski, romance scammers, law enforcement impersonators, and “robocallers” exploited the lack of anti-money laundering protections in the firm’s systems to transfer funds out of users’ crypto wallets.

Rogalski commented during a press conference that “these ATMs are ready-made for scammers,” adding that they:

“Direct the victims, which are often elderly or otherwise vulnerable, to specifically go to Bitcoin of American ATMs, take money that they’ve withdrawn from their savings accounts or 401Ks,”

They are then instructed to put the cash into the machine in exchange for BTC in a wallet they think is theirs but have no control over, he explained.

He added that in one instance, an elderly gentleman lost $11,250 in three transactions to one of the dodgy kiosks in under an hour to this scam.

*Product image of a Bitcoin of America kiosk. Source: Bitcoin of America*

Meanwhile, the company allegedly pocketed a 20% transfer fee each time this occurred and continued to do even after learning they were fraudulent.

The indictment also accuses the company of being able to operate due to “written misrepresentations regarding the nature of their business to government agencies,” helping it run the kiosks without a money transfer license, according to a Mar. 3 report from Law360.

52 Bitcoin ATMs were seized last week, but the firm has more in Ohio and other states. Bitcoin of America made $3.5 million in profits from cash deposits at these unlawful kiosks in 2021, Rogalski said.

Officials believe the firm has been operating and evading regulatory safeguards and financial compliance requirements since 2018.

The investigation into the firm and its executives was reportedly spearheaded by the United States Secret Service’s Cyber Fraud and Money Laundering Task Force.

In October, the FBI’s Miami Field Office warned that crypto ATMs were becoming a popular vehicle for scammers to defraud victims in an increasing trend of “pig butchering” scams.

Bitcoin ATM firm allegedly profited from crypto scams via unlicensed kiosks: Prosecutor

More than 50 crypto kiosks were seized in the investigation led by the U.S. Secret Service’s Cyber Fraud and Money Laundering Task Force.

A Bitcoin (BTC) technology firm and its executives have been indicted for allegedly operating unlicensed crypto kiosks in Ohio thatknowingly benefited from victims of cryptocurrency scams.

S&P Solutions, which operated as Bitcoin of America, along with three of its executives, are facing charges of money laundering, conspiracy and other crimes connected to the operation of more than 50 unlicensed crypto kiosks in the state.

A Cuyahoga County grand jury returned the indictment on March 1 against the firm, the owner and founder, Sonny Meraban, manager Reza Meraban, and company attorney William Suriano. The trio was arrested last week and search warrants were executed on their residences in Florida and Illinois.

3 men, 1 business charged in cryptocurrency scam; avoid Bitcoin of America ATMs, Cuyahoga Co. prosecutor says https://t.co/LaR1L2E1yH

— News 5 Cleveland (@WEWS) March 2, 2023

According to the prosecuting attorney Andrew Rogalski, romance scammers, law enforcement impersonators, and “robocallers” exploited the lack of Anti-Money Laundering protections in the firm’s systems to transfer funds out of users’ crypto wallets.

Rogalski commented during a press conference that “these ATMs are ready-made for scammers,” adding that they:

“Direct the victims, which are often elderly or otherwise vulnerable, to specifically go to Bitcoin of American ATMs, take money that they’ve withdrawn from their savings accounts or 401Ks.”

They are then instructed to put the cash into the machine in exchange for BTC in a wallet they think is theirs but have no control over, he explained.

He added that in one instance, an elderly gentleman lost $11,250 in three transactions to one of the dodgy kiosks in under an hour to this scam.

Meanwhile, the company allegedly pocketed a 20% transfer fee each time this occurred and continued to do even after learning they were fraudulent.

Authorities seized 52 Bitcoin ATMs last week, but the firm has more in Ohio and other states. Bitcoin of America made $3.5 million in profit from cash deposits at these unlawful kiosks in 2021, Rogalski said.

Officials believe the firm has been operating and evading regulatory safeguards and financial compliance requirements since 2018.

The investigation into the firm and its executives was reportedly spearheaded by the United States Secret Service’s Cyber Fraud and Money Laundering Task Force.

In October, the FBI’s Miami Field Office warned that crypto ATMs were becoming a popular vehicle for scammers to defraud victims in an increasing trend of “pig butchering” scams.

Bitcoin ATM decline: Over 400 machines went off the grid in under 60 days

Between December 2020 and January 2022, more than 1,000 crypto and Bitcoin ATMs were installed each month.

Crypto ATMs — one of the key infrastructure pillars for the mass adoption of cryptocurrencies — have seen a drastic reduction this year. In the first two months of 2023, the net cryptocurrency ATMs installed globally reduced by 412 machines.

Since 2014, the total number of crypto ATMs has maintained a steady upward trajectory while catering to millions of users worldwide for seamless crypto-fiat conversions. For over a year, between December 2020 and January 2022, more than 1,000 crypto and Bitcoin (BTC) ATMs were being installed every month. However, the bear market had an immediate impact on its growth.

*Net crypto ATM installations worldwide. Source: Coin ATM Radar*

September 2022 was the first time in history when total crypto ATMs saw a net decline. However, 2023 marked a new low by recording a decline in total crypto ATM installations for two consecutive months.

In January 2023, the global crypto ATM network shed 289 machines, further dropping by 123 machines in February. While the ongoing decline was initially purely attributed to geopolitical tensions, revenue losses and a prolonged bear market, service providers have been trying out cheaper alternatives for operations.

Recently, crypto ATM provider Bitcoin Depot converted its 7,000 physical machines to BitAccess software. The move helped reduce operational costs related to software licensing fees, which cost $3 million annual.

Do you have an ATM in your area and are unsure how to use it? Check out Cointelegraph’s beginner’s guide to learn everything about Bitcoin ATMs.

On the other hand, payments giant Mastercard partnered with Binance to launch a card for crypto payments in Latin America.

Olá, Brasil! #Binance Card has just launched in Brazil – another step towards crypto adoption pic.twitter.com/UJRmpMhpbQ

— Binance (@binance) January 30, 2023

In a press release shared with Cointelegraph, Guilherme Nazar, Binance Brazil’s general manager, stated:

“Payments is one of the first and most obvious use cases for crypto, yet adoption has a lot of room to grow.”

Moreover, at launch, the card offered up to 8% cash back in crypto on eligible purchases and zero fees on some ATM withdrawals.

Bitcoin Depot converts BTC ATMs software to reduce operating costs

The software conversion of the crypto ATMs, which vertically integrates Bitcoin Depot’s hardware and software, eliminates annual software licensing fees.

Crypto ATM installations have seen a steady decline across the world over the past several months. While some ATMs have been taken out of operation due to geopolitical tensions and revenue decline, providers like Bitcoin Depot have started converting their physical Bitcoin (BTC) ATMs to software.

Bitcoin Depot recently converted all of its 7,000 crypto ATMs and kiosks to a software-based offering powered by BitAccess. The software conversion drive came after Bitcoin Depot acquired majority equity in BitAccess in November 2022. Months before the deal, Bitcoin Depot had revealed plans to go public in 2023 via an $885 million deal with a special-purpose acquisition company.

The software conversion of the crypto ATMs, which vertically integrates Bitcoin Depot’s hardware and software, eliminates annual software licensing fees. The fees previously accounted for $3 million in annual operational costs.

*Crypto ATM growth by manufacturers. Source: Coin ATM Radar*

In the first half of 2022, BitAcess became a market leader. However, since July 2022, the company has seen a consistent decline in total ATM installations, confirms data from Coin ATM Radar.

As shown in the above graph, BitAccess is currently down to third position after Genesis Bytes and Genesis Coin, both of whom have increased their market share in the same timeline. Explaining the motive behind the move, Bitcoin Depot’s vice president of BTM operations, Jason Sacco, stated:

“By swapping out the existing hard drive with one preloaded with Bitaccess software, we quickly completed the software conversion while avoiding certain technical issues that can happen in field conversion projects.”

Sacco also revealed that the first 6,000 of Bitcoin Depot’s Bitcoin ATMs were software converted in 10 weeks. The increase in crypto ATMs is directly proportional to the amount of crypto exposure for the general public.

When El Salvador opted for Bitcoin as a legal tender, President Nayib Bukele announced the country would build a supporting infrastructure of 200 ATMs and 50 branches.

The United Kingdom’s financial regulator, the Financial Conduct Authority (FCA), recently announced that all crypto ATMs operating in the U.K. are unregistered and illegal.

At the time, FCA’s executive director of enforcement Mark Steward shared the intention to disrupt unregistered crypto businesses in the country.

UK FCA to take action against unregistered, illegal cryptocurrency ATMs

According to the FCA, all crypto ATM operators in the United Kingdom are currently illegal because none of them is registered with the regulator.

The United Kingdom’s financial regulator, the Financial Conduct Authority (FCA), is coming for unregistered cryptocurrency automated teller machines (ATMs).

The FCA and the cyber team at West Yorkshire Police have taken action against several sites in and around Leeds city suspected of hosting illegally operated crypto ATMs.

Announcing the news on Feb. 14, the FCA emphasized that no crypto ATM operators in the United Kingdom currency have FCA registration. The authority stated that all crypto exchange providers — including crypto ATM operators — must be registered with the FCA and comply with the U.K. money laundering regulations.

“Unregistered crypto ATMs operating in the U.K. are doing so illegally,” FCA’s executive director of enforcement Mark Steward said, adding that the regulator will continue to disrupt unregistered crypto businesses in the country. The exec also noted that crypto products are “currently unregulated and high-risk,” warning investors to be prepared to lose all their money with crypto.

According to police detective sergeant Lindsey Brants, local enforcement officers have issued several warning letters to crypto ATM operators, requesting cease and desist using the machines. “Any breach of regulations would result in an investigation under money-laundering regulations,” he added.

The FCA’s action against crypto ATMs would apparently affect a notable number of ATM operators, as there are at least 28 locations providing Bitcoin (BTC) ATMs in the United Kingdom, according to data from Coin ATM Radar. More than 50% of those crypto ATM locations are situated in London, with additional locations near Birmingham, Manchester and Nottingham, the data shows.

*Bitcoin ATMs in the United Kingdom. Source: Coin ATM Radar*

The latest attack on crypto ATMs in the U.K. is not the first action taken by the FCA. In March 2022, the same authority issued a similar statement on the termination of Bitcoin ATMs in the country, calling ATM operators to “shut down or face further action.”

At the time of writing, the FCA has issued registration to a total of 41 crypto firms in the United Kingdom, including platforms like Gemini, Zodia Custody, Bitpanda, Revolut and others.

Coin Cloud crypto ATM operator files for bankruptcy, owes over $100M to Genesis

The company was in “hyper-growth” in January 2022; now it has over 5,000 creditors and debts of over $100 million. Bankrupt Genesis is its largest creditor.

Cash Cloud, the operator of Coin Cloud digital currency automatic teller machines in the United States and Brazil, has filed for Chapter 11 bankruptcy in U.S. Bankruptcy Court for the District of Nevada.

“We are announcing today that our company has filed for Chapter 11 reorganization,” Coin Cloud founder, CEO and president Chris McAlary said in a statement provided to Cointelegraph on Feb. 8. “This decision will allow us to rework our debt, protect the interests of our creditors, and emerge as a stronger, more financially stable company.”

McAlary said that Coin Cloud “remained operational for our go-forward hosts and customers,” had the support of its largest creditors, and was still “optimistic about the future of the cryptocurrency industry and our role in building it.”

According to Feb. 7 filing, the company has liabilities between $100 million and $500 million, with between 5,001 and 10,000 creditors and assets between $50 million and $100 million.

Cash Cloud’s biggest creditor is Genesis Global Capital, a subsidiary business of Digital Currency Group’s bankrupt lending arm. It has an unsecured claim of over $108 million from Genesis, far outstripping the next largest claimant, which is owed over $8 million.

Citing unnamed sources, Bloomberg reported on Nov. 22 that Coin Cloud had received an unsecured loan of around $100 million from Genesis and was at that time in talks with it seeking “additional capital” to help it restructure a debt of about $125 million. Genesis was already under financial pressure, and it is not clear that Coin Cloud received additional credit from it at that time.

Coin Cloud was a pioneer in its field, having been active since at least 2014. Coin Cloud stated in a blog post in January 2022 that it had over 1,100 ATMs at the time and said it was “at a pivotal time in the company’s hyper-growth.” The cryptocurrency ATM industry experienced a sharp downturn in the second half of 2022. In addition, cryptocurrency has been incorporated into existing ATMs in places, competing with purpose-built crypto ATMs.

For a limited time only use promo code 15GIFTEEN to enjoy 15% OFF at a Coin Cloud Bitcoin ATM location.
Check out the thread to see how you can redeem your offer! pic.twitter.com/OsEAQCrjEB

— Coin Cloud (@CoinCloudDCM) December 1, 2022

Coin Cloud claims on its website that it has more than 5,000 ATMs that handle over 40 cryptocurrencies. Coin Cloud was ranked second worldwide by number of ATMs when it had 4,826 machines, nearly all of which were located in the United States.

In his statement, McAlary said that the team had “made drastic cost cuts to respond to market challenges in order to maintain the company’s profitability.”

Its related entities, including those in Brazil, are not undergoing corporate restructuring and are operating as normal, he added.

Updated at 10:02 UTC on Feb. 8.

A representative of Genesis reached out to Cointelegraph with the information that Genesis Global Capital is the true largest creditor of Coin Cloud, contrary to the information in the Coin Cloud filing, which indicated Genesis Global Trus. The accurate information is reflected in this docket.

Updated again at 2:34 am UTC on Feb. 9 with the statement from Coin Cloud’s Chris McAlary.

UK-native stablecoin integrates into 18,000 ATMs nationwide

Brits can now withdraw physical cash for GBPT, a one-for-one British pound stablecoin, as well as other cryptocurrencies at ATMs in the United Kingdom.

A partnership between Poundtoken and BitcoinPoint will make the country’s first 100%-backed British pound stablecoin, GBPT, accessible to retail consumers via a network of 18,000 ATMs across the United Kingdom. The move marks another step toward the U.K. becoming a “crypto hub” and is in line with the government’s push to use stablecoins for wholesale settlements.

BitcoinPoint is a Lightning Network-enabled Bitcoin (BTC) and cryptocurrency exchange, licensed and registered in the United Kingdom. Poundtoken is the sole issuer of GBPT, which it states is fully backed in pounds at all times, with monthly attestations provided by auditor KPMG.

Cryptocurrencies including Bitcoin and Ether (ETH) can already be swapped for cash at ATMs across the United Kingdom. However, listing GBPT on BitcoinPoint means that users can now access retail and wholesale payments using the pound stablecoin and use a currency familiar to Brits as an on-ramp into crypto.

*There are thousands of ATMs in London alone. Source: ATM Map*

Benoit Marzouk, CEO of BitcoinPoint, told Cointelegraph that the move could democratize “access to crypto for non-tech savvy people in the United Kingdom.” He explained that:

“It’s also fully in line with the government’s consideration to integrate stablecoins with the U.K. economy.”

The U.K. is the second-largest economy in Europe. Its government is recruiting for senior roles in central bank digital currencies as well as a digital pound rollout, while Prime Minister Rish Sunak has been vocal in his support for “digital settlement assets,” the country’s new, preferred terminology for crypto.

Crosbie explained to Cointelegraph that Poundtoken came about as a result of the “rise in USD stablecoins” such as Tether (USDT) and USD Coin (USDC) and the fact that there is no U.K.-based alternative.

“The purpose of GBPT is really to bring the blockchain and crypto to the U.K. and make it easier for adoption in the U.K. […] It’s time the U.K. started to realize its potential as a world leader in crypto.”

The partnership works to normalize the use of stablecoins to conduct everyday financial practices. Marzouk explained, “We are Bitcoiners at BitcoinPoint, and we really see value in stablecoin projects — it really makes sense.”

*Users require a phone number and a BitcoinPoint account to use the service. Source: Marzouk*

Stablecoin use has proliferated around the world, from inflation-ridden Argentina to European financial hub Switzerland. However, the scars of the Terra algorithmic stablecoin crash are still fresh for the crypto industry, forcing some jurisdictions, such as Hong Kong, to outlaw their use entirely.

Scoring systems from traditional finance risk assessors such as Moody’s may give credibility to the burgeoning stablecoin ecosystem, while efforts from Bitcoin-advocate groups such as the Bitcoin Policy Institute may pave the way toward a crypto- and stablecoin-based future.

Marzouk told Cointelegraph that in the U.K., cashing out via an ATM off-ramp using BitcoinPoint remains low — less than 5% — and it is unlikely that there will be a dramatic uptick in numbers of users taking advantage of GBPT to hold physical cash. However, he is “quite confident about the on-ramp [into crypto].”

“We see Bitcoiners opting out from the banking system and becoming Bitcoin only. You could also have people who don’t want to have a bank account and could therefore use GBPT. So, when they need cash, they can off-ramp into GBPT to get cash.”

The move could allow more and more crypto enthusiasts to participate without a bank. The integration is now live across the United Kingdom’s 18,000 ATMs.

Australia ranks 3rd in crypto ATM installations after US and Canada

Australia now enjoys 234 crypto ATMs, which puts her in the third spot globally after the United States and Canada.

Despite the bear market and the record-low dynamics of new Bitcoin ATM installations around the world, Australia breaks into the top three nations globally by the number of crypto ATMs. It was only in the first days of January when the Aussies got to the fourth spot — since that time they installed 16 more machines.

According to Coinatmradar’s data, Australia now enjoys 234 crypto ATMs, which puts her in the third spot globally after the United States and Canada. In three weeks it outperformed Spain, which possesses 222 crypto ATMs.

It’s all about dynamics — Australia deployed 99 crypto ATMs, which is almost half of its total number, in only the last three months of 2022. And it doesn’t slow down. Since Jan.1, Australia has installed 16 new machines, while Spain has actually lost 4 and El Salvador, which holds the fifth global spot, hasn’t recorded a single new ATM.

*Crypto ATM distribution by continents and countries. Source: CoinATMRadar*

Overall, Australia’s numbers, as well as Spain’s and El Salvador’s, could hardly match the enormous proportion of crypto ATMs in the U.S. The States are home to 33.387 or 86.9% of all the machines in the world. Together with Canada (2.556) at the time of writing, they hold a stunning 94.4% of all the crypto ATMs.

A year-long bear market in 2022, accompanied by geopolitical tensions and global inflation, resulted in a dramatic slowing down of the crypto ATMs installations. Only 94 Bitcoin ATMs were added between July to the end of 2022 to the global network in contrast to 4,169 ATMs during the first half of 2022.

In January 2023, the Australian city of Coolangatta got its first Bitcoin ATM with integrated Lightning Network capabilities. It works similarly to traditional crypto ATMs but saves significant time due to the layer-2 Lightning solution. And also allows for purchasing very small amounts of BTC.