Crypto and Bitcoin ATM Scams Continue to Skyrocket: Here’s a Safe Way Through

Crypto and Bitcoin ATM Scams Continue to Skyrocket: Here’s a Safe Way Through
  • The number of crypto ATMs has increased to 38,000, even after experiencing a major drop. 
  • Crypto ATM scams have increased over the last few months, defrauding over thousands of dollars. 
  • Government and security agencies have continued to put in place sanctions to curb crypto scams.

Crypto ATM is a simple way for people to buy or convert their fiat currencies into cryptocurrency from an ATM designed mainly for crypto. This is done by inserting cash or debit cards into the machines.

According to data obtained from AltIndex, the number of crypto ATMs worldwide declined from about 7,000, with major effects in the United States.

There are reportedly only about 26,700 ATM machines currently installed in the United States, and this is still considered a very large number compared to other parts of the world where there are roughly 1,500.

The decline is attributed to the increase in fraudulent use of these ATMs. The Federal Trade Commission announced recently that a total cryptocurrency of $1 billion has been stolen from the public by fraudsters. This figure will continue to rise if just measures are not implemented by the government and appropriate agencies.

Just in 2021, a little over 46,000 victims have already been reported. Even with the current decrease in crypto ATMs around the world, there were 202 new Bitcoin ATMs installed in May 2023, which further brought the total number to 38,000 from 35,000 crypto ATMs in the world. 

Government and Security Regulate ATMs to Curb Fraudulent Activities 

There have been constant speculations in recent weeks on several restrictions dropped on cryptocurrency. This new improvement can also impact the need to install more crypto ATMs as the price of Bitcoin rises. This is a welcomed improvement for traders and investors alike.

In the United States, crypto ATMs are regulated and registered with the appropriate agencies to enforce the anti-money laundering laws. This is necessary as the nation continues to fight and advocate against money laundering.

The governor of California, Gavin Newsom and the Senate have signed into law a bill to limit $1000 crypto coins per person for a day. He has also set a  $5 or 15% cap on transaction fees imposed by crypto ATM operators to take effect from 2025. 

All of these measures are put in place to protect individuals from crypto scammers. Although, there have been scams recorded in the use of cryptocurrencies in the past, however, there have been a steady rise in the numbers in recent times. 

Crypto Operators Fume at Excessive Regulations

Crypto operators are not pleased with the regulations put in place for crypto ATMs. They argue that the limit imposed will harm the market and those who operate the ATMs.

The operators suggest that a lesser stringent regulation should be adopted like making use of identifications to flag suspect fraudulent activities. They however, applaud the need to address the underlying concerns of crypto scammers. 

Future of Crypto ATMs

The crypto ATMs technology has improved over the years, making it convenient for people to buy and sell cryptocurrency. It is also easier to pay for services with crypto ATMs in place of fiat currencies.

However, the increase in fraudulent activities involving crypto ATMs have been a major concern. In order to curb this menace, states like California have implemented a bill to limit crypto transactions to $1000 per day for each user.

The initial rise in the price of Bitcoin and more regulations been eased shows a positive sign as to whether there will be an increase in the installation of more crypto ATMs in the near future.

Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.

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