As the cryptocurrency market has seen a downfall to $1.73 trillion from its best $2.97 trillion during 2021, installations of crypto ATMs too recorded slower growth in the first two months of 2022.
In the first two months of 2022, only 1817 crypto ATMs were installed, a decrease of 618 crypto ATMs when compared to 2435 ATMs installed during the same months last year.
Crypto experts attributed slower ATM installations to action by various governments on crypto ATMs citing increased unlawful activities in their respective countries.
Some nations have stated that crypto ATMs can also be a challenge to the banking sector and they just want to gradually move towards it not to push for crypto adoption, as the cryptocurrency is at a very early stage of development.
Crypto experts also believe that people are moving towards crypto-only because it can make them rich very quickly and many crypto exchanges have even gone ahead with advertising such a return.
Today, there are 36,408 crypto ATMs installed in 76 countries, of which the majority are installed in the US, which has 32,051 ATMs alone with a market share of 88%, and the balance is spread in other countries.
North America accounts for 95.1% of crypto ATMs that is 34,633, with Canada accounting for 2833 ATMs, whereas Europe accounts for 1388 ATMs with a share of 3.88%, according to Coin ATM Radar.
Of the 36,408 crypto ATMs, you can buy Bitcoin on 36,394 ATMs; Ethereum (ETH) on 27,420 ATMs; Litecoin (LTC) on 27,656 ATMs; Dogecoin (DOGE) on 12,231; Bitcoin Cash (BCH) on 10,275 ATMs; Tether (USDT) on 6951 ATMs; Dash (DASH) on 6218 ATMs; Monero (XMR) on 1755 ATMs, Ripple (XRP) on 424 and various altcoins on 28,410 ATMs.
Top 10 operators run 25,485 crypto ATMs that account for 70% of the ATMs installed and the balance 30% is operated by 594 other operators.
Of the top 10 operators, Bitcoin Depot has the largest share of 19.2% with 6998 ATMs, followed by Coin Cloud share of 14.1% with 5134 units, Coin Flip share of 9.8% with 3570 units, Bitcoin of America share of 4.9% with 1797 units, Bitstop share of 4.6% with 1676, Rocket Coin share of 4.6% with 1664, Coinsource share of 4.1% with 1497 units, Byte Federal of 3.7% with 1340 units, Localcoin share of 2.5% with 915 units and National Bitcoin ATM share of 2.5% with 894 crypto ATMs installed.
Despite a slower start to the year, crypto ATM installations are expected to grow as El Salvador alone plans to install close to 1500 Bitcoin ATMs.
El Salvador is the only country in the world today that has recognized Bitcoin as a legal tender and plans to build a Bitcoin city where Bitcoin will be the only currency.
Crypto ATMs will see an upwards trajectory only if nations decide to adopt crypto and there is some standardization among various nations in this regard.
On 17 January 2022, Indian prime minister Narendra Modi speaking virtually at the 2022 World Economic Forum’s annual Davos conference said that global cooperation is needed on cryptocurrency.
However, tough days are ahead for crypto ATMs operators, as many countries want to control it by regulations that will make installations of crypto ATMs very difficult.
UK’s FCA ask crypto ATMs operators to shut
On 11 March 2022, UK’s Financial Conduct Authority (FCA) said that all crypto ATMs are prohibited from operating in the UK.
FCA warned crypto ATM operators to shut their machines as it said that none of the crypto ATMs are registered with the government authority.
According to Coin ATM Radar, today there are close to 80 crypto ATMs across the UK.
The authority also said that any Crypto ATM offering crypto-asset exchange services must comply with UK Money Laundering Regulations (MLR) and none of the crypto asset firms registered with us have been approved to offer crypto ATM services.
That means any Crypto ATMs operating in the UK are doing so illegally and consumers should not be using them, FCA stressed.
The UK is not the only nation that is taking action against crypto ATMs. In January this year, the Monetary Authority of Singapore (MAS) released new guidelines targeting crypto promotions in the country.
Daenery’s & Co., Singapore’s largest crypto ATM operator, completely shut down operations stating that the new regulation came as a shock to its business.
Close to five major crypto ATMs located in the vicinity of shopping centers have also shut operations.
Deodi Pte on its website said, “Pursuant to MAS notice, we regret to inform you that we have to shut down our public bitcoin machine with immediate effect.”
Even though Singapore places itself as a crypto-friendly country, the decision to ban crypto ATMs has shocked the crypto industry.
The next few months are very important for crypto ATMs operators and only time will tell whether crypto ATMs will see an increase or keep on decreasing. The only silver lining is that crypto ATMs in North America are increasing.
