global crypto

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.

Related: Bitcoin ATM maker shuts cloud service after user hot wallets compromised

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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“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.

Stellar joins CFTC’s Global Markets Advisory Committee as one of four crypto orgs

Stellar chief operating officer Jason Chlipala said the foundation would bring the unique perspective of Layer 1 to the committee and highlight stablecoin use cases.

The Stellar Development Foundation (SDF) has become the newest member of the United States Commodity Futures Trading Commission (CFTC) Global Markets Advisory Committee (GMAC), the blockchain announced on its blog. The committee is preparing to meet on Feb. 13 for the first time in over a year.

SDF supports the Stellar blockchain, which is used for crypto-fiat transfers. The foundation will be represented on the committee by chief operating officer Jason Chlipala. He wrote in the company blog that “we hope to bring the unique perspective of Layer 1 protocols” to the GMAC and:

“As part of the Committee, SDF will highlight the role of stablecoins in the digital asset markets and real-world use cases, including leveraging stablecoins in the delivery of humanitarian aid.”

Stellar is the issuer of the Stellar (XLM) coin and creator of the Stellar Aid Assist program that “enables aid organizations to deliver cash assistance to vulnerable populations.” It joins crypto-oriented GMAC members CoinFund, Uniswap Labs and the Chamber of Digital Commerce. Traditional finance giants including HSBC, Goldman Sachs and BlackRock are also represented on the 36-member committee.

Related: MoneyGram’s USDC transfer service launches in several countries

CFTC commissioner Caroline Pham is the new sponsor of the GMAC. The first meeting under her sponsorship will be devoted to organizational issues. “Potential topics relating to global market structure and digital asset markets for the GMAC to prioritize in making policy recommendations to the CFTC” will also be discussed.

Pham stated in an interview Jan. 17 that she has held over 75 meetings with various parties on global crypto regulatory standards since she was nominated to the CFTC by U.S. President Joe Biden in January 2022. In September, she proposed the creation of a CFTC Office of the Retail Advocate modelled after the Security and Exchange Commission’s Office of the Investor Advocate.

Bank of India report calls for regulatory coordination on crypto market challenges

The RBI’s latest financial stability report accentuated the negative about cryptocurrency and reminds the world that India is looking for global action on crypto regulation.

The Reserve Bank of India (RBI) has again expressed concerns about the burgeoning crypto ecosystem and suggested parts of it could be banned. In its latest financial stability report, released Dec. 29, the central bank said it would use its rotating presidency of the G20 group of the world’s largest economies to call for the development of a global regulatory framework of crypto assets.

The report was generally upbeat about current conditions in the country, despite “strong global headwinds,” saying, “the Indian economy and domestic financial system remain resilient.” The tone changed drastically in its discussion of crypto, however, as it highlighted a familiar laundry list of crises that struck the cryptoverse in 2022. It noted crypto’s volatility, high correlation with equities and its inadequacy as a hedge against inflation, as well as issues with governance, and added:

“Leverage is a constant theme running across the crypto ecosystem, making failures rapid and losses huge and sudden.”

Be that as it may, rising prices in that ecosystem drive crypto’s popularity, especially in the “younger segment of the population.” The report concluded:

“To address potential future financial stability risks and to protect consumers and investors, it is important to arrive at a common approach to crypto assets.”

The report saw three options for crypto regulation. The first was “the same-risk-same-regulatory-outcome principle.” Second, it suggested the possibility of a prohibition of crypto assets “since their real-life use cases are next to negligible.” This option would be complicated by “different legal systems and individual rights vis-à-vis state powers” globally. A third option, “let it implode” without regulatory action, was considered too risky for mainstream finance to pursue. The report noted that:

“Under India’s G20 presidency, one of the priorities is to develop a framework for global regulation, including the possibility of prohibition, of unbacked crypto assets, stablecoins and DeFi.”

Related: Crypto could spark the next financial crisis, says India’s RBI head

Crypto regulation was a G20 priority for India from the beginning of its presidency. Despite the government’s generally negative position on cryptocurrency, there are an estimated 115 million users in India. The RBI is more bullish on central bank digital currency. India also has one of the world’s largest Web 3 workforces.


Net Bitcoin ATMs growth drops globally for the first time ever

Data on net changes of crypto ATM installations confirm that, in September, 796 crypto ATMs were pulled off from the global network.

The domino effect of a prolonged bear market seeped into the Bitcoin (BTC) ATM ecosystem as September 2022 recorded negative growth in global net installations for the first time in history — primarily driven by a slowdown in the United States.

The total number of Bitcoin ATMs installed over time fell to 37,980 in Sept. from an all-time high of 38,776 ATMs in August, resulting in a drop of -2.05%, as evidenced by data from CoinATMRadar.

The number of Bitcoin machines installed over time. Source: CoinATMRadar

Data on net changes of crypto ATM installations confirm that in September, 796 crypto ATMs were pulled off from the global network. The United States alone recorded a reduction of 825 ATMs. However, Europe, Canada and a few other jurisdictions cushioned the downfall with new installations locally.

The net change of cryptocurrency machines number installed and removed monthly. Source: CoinATMRadar

Despite the setback, data based on 60 days suggest that nearly 14 crypto ATMs are being installed globally per day, with Genesis Coin representing a 40.3% share of ATMs among other manufacturers. Other popular crypto ATM manufacturers include General Bytes and BitAccess.

The sudden reduction in the crypto ATM installations can be attributed to geopolitical tensions among factors, including lack of regulatory clarity and market uncertainties.

Related: How Bitcoin ATMs in Greece fare during a record-breaking tourist season

Although crypto ATM installations have taken a temporary hit due to external factors, countries continue to show interest in having functional crypto ATMs within their borders.

Most recently, Japan decided to reintroduce crypto ATMs after 2014, spearheaded by local crypto exchange Gaia Co. Initially, new ATMs will be installed across Tokyo and Osaka. The firm plans to set up 50 BTMs across the country by August 2023.

As Cointelegraph reported, Gaia became the first locally-registered crypto company to have installed crypto ATMs in Japan.