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May 2024 brought significant changes to the Bitcoin ATM industry, marked by substantial advancements and noteworthy events. In this comprehensive Bitcoin ATM News Roundup, we highlight the most significant updates and trends shaping the sector.
From regulatory shifts to technological innovations, here’s everything you need to know about the latest developments in the world of Bitcoin ATMs.
UK Watchdog Orders Shutdown of Bitcoin ATMs
On March 11, 2024, the UK’s Financial Conduct Authority (FCA) mandated the shutdown of all Bitcoin ATMs operating within the country.
The FCA cited concerns over inadequate background checks, particularly for smaller deposits, as the primary reason.
None of the 81 Bitcoin ATMs in the UK, controlled by eight different providers, are registered with the FCA, rendering their operations illegal.
The authority emphasized that these machines, often found in supermarkets and convenience stores, bypass the Know Your Customer (KYC) protocols, posing significant risks.
Nouria Partners with Bitcoin Depot to Install BTMs in New England
On May 29, 2024, Nouria, a major fueling station chain in New England, announced a partnership with Bitcoin Depot to install Bitcoin Teller Machines (BTMs) in 57 of its stores across Massachusetts, Maine, and New Hampshire.
This move aims to enhance cryptocurrency accessibility for customers, allowing them to convert cash into Bitcoin easily.
Brandon Mintz, CEO of Bitcoin Depot, expressed excitement about the collaboration, highlighting it as a step toward broader crypto adoption in the region.
Global Decline in Bitcoin ATMs Following US Shutdowns
May 2024 witnessed a significant global decline in Bitcoin ATMs, ending a 10-month growth streak.
The reduction was primarily driven by removing over 300 ATMs in the United States due to law enforcement crackdowns on machines often used for scams and extortion.
As a result, the total number of Bitcoin ATMs worldwide decreased from 37,902 to 37,621.
Despite this decline, new installations in countries like Australia, Switzerland, and various European nations mitigated the net loss.
Rising Scam Incidents Involving Bitcoin ATMs
Several incidents in May 2024 highlighted the increasing use of Bitcoin ATMs in scams:
- San Diego, CA: A retiree lost $1.335 million in a sophisticated scam involving Bitcoin ATM deposits and bulk gold purchases. The scammers posed as tech support and financial institution employees, convincing the victim to deposit money into Bitcoin ATMs and purchase gold bars to secure her assets.
- Pepper Pike, OH: A resident in his 70s fell victim to a scam after receiving a fraudulent pop-up message on his computer. He was persuaded to withdraw $30,000 in cash and deposit it into a Bitcoin ATM. Local police noted the difficulty in tracing such cash deposits.
- Durham, NC: A couple lost over $70,000 in an investment scam linked to Bitcoin ATMs. The scammers accessed their bank accounts via information in an online investment profile, leading to unauthorized transactions. This incident underscores the vulnerability of individuals to fraudulent investment schemes.
Hacker Exposes Source Code for El Salvador Bitcoin ATMs
A hacker has exposed the source code for El Salvador’s government-operated Chivo Bitcoin ATMs, adding to a series of cyberattacks nationwide.
This incident follows the exposure of over 5 million photos and contact information of nearly every adult in El Salvador earlier this month, as reported by Protos.
The leaked source code includes critical files such as .exe, .txt, .bat, and .reg, key for the ATM software. The hacker group, CiberInteligenciaSV, is responsible for these leaks, which also include 800,000 license plates and 96,000 pregnancy records of Salvadorans.
Woman Loses $204K in Bitcoin ATM Scam
A woman named Sue fell victim to a Bitcoin ATM scam, losing over $204,000.
The scam began with a pop-up message on her laptop, masquerading as a security alert and instructing her to call a phone number.
The scammer, posing as a security agent, convinced Sue that $14,500 was at risk and instructed her to withdraw and deposit the money into a Bitcoin machine to secure her funds.
Despite friends’ warnings, Sue followed the scammer’s instructions, making multiple deposits over 13 days, believing her devices were compromised.
Retired IRS special agent Brian Watson emphasized the simplicity yet peril of these BTM scams, urging the public to verify security concerns directly with financial institutions.
This case highlights the need for caution and second opinions when facing urgent financial threats.
Crypto ATMs to Resurge Once Bitcoin ‘FOMO’ Hits Full Swing, Says CEO
According to Bitcoin Depot CEO Brandon Mintz, Bitcoin ATMs are projected to see a resurgence following the Bitcoin halving event.
Despite a decline in crypto ATM installations in 2023 due to a bear market and the collapse of several crypto firms, 2024 has seen a strong start, with 1,469 new installations in the first quarter.
Mintz predicts a significant increase in crypto ATM usage as Bitcoin adoption rises during the FOMO (fear of missing out) phase post-halving, typically when Bitcoin prices surge.
Bitcoin Depot reported a 7% increase in revenue for 2023, despite a 54% drop in net income, and plans to install 900 ATMs in the first quarter of 2024, with additional plans for 940 ATMs across 24 U.S. states.
The U.S. hosts nearly 83% of the world’s 37,001 crypto ATMs.
Mintz believes that while Bitcoin ETFs might boost Bitcoin prices, they will not negatively impact Bitcoin ATMs but increase their usage as Bitcoin adoption grows among the general public.
