Crypto ATMs, machines that let people buy or sell cryptocurrencies quickly, have been in place since Bitcoin gain popularity in 2013. With these machines, there is fast and easy access to digital money, however, this convenience comes at a price. Fraudsters have targeted these machines and they are using these machines to scam people, turning cash into cryptocurrency transactions that cannot be reversed.
Due to these scams, victims have lost their life savings and now are suffering. All of this has forced regulators in various U.S. cities and states to increase scrutiny on these machines, introduce stricter rules and there have been plans to ban some machines altogether.
As these machines gain momentum, the future of crypto ATMs looks a little shaken and uncertain, raising genuine questions about how to balance convenience with safety.
How Crypto ATMs Work?
Crypto ATMs are basically kiosk machines where users can buy or sell their cryptocurrencies. These purchases can be made through cash or using debit cards at locations such as gas stations and convenience stores. Users select the amount, scan a QR code for their wallet or the machine’s generated one, insert cash, and receive crypto almost instantly after backend verification.
Machines are connected to exchanges for real-time pricing. One of the disadvantages here is that these machines usually have high fees and transactions are irreversible.
Global and US Numbers
According to Finbold, the number of Bitcoin ATMs worldwide grew steadily in 2025, from 37,722 to 39,158, adding about four new machines per day. The increase in numbers from 37,722 to 39,158 indicates that there has been an increase of 3.8% this year.
The U.S. has been the largest market and added about 498 ATMs, followed by Australia which saw the fastest growth, jumping from 1,385 to 1,986 ATMs, a 43% rise, Canada added 284 machines and Europe added 108 ATMs.
When this data is compared with 2024 data, the growth is a little slower, however, the increasing number shows that the demand for in-person access to Bitcoin still remains strong.
Benefits of Crypto ATMs
These machines make buying and selling cryptocurrency quick and easy, even for people who are not tech-savvy. As these machines work like regular ATMs, users can insert cash or use a debit card to complete transactions in minutes.
These machines can be easily found in convenience stores and gas stations. They are usually useful for travellers as they allow instant access to crypto without visiting a currency exchange or navigating complicated online platforms.
The main aim of these machines is to provide a simple, fast and accessible way for more people for enter the world of digital currency.
Disadvantages of Crypto ATMs
Even though there are many upsides to these installations of these machines, but we cannot fully ignore the downsides. Many of these machines have weak or inconsistent identity checks, which allows criminals to use them for scams, money laundering or fraud.
Over half of U.S. ATMs do not require photo ID, and some only ask for a phone number, making it easy to bypass limits to hide illegal activity. Multiple operators in the same area often do not share information, which can let bad actors repeat scams across machines.
Victims can be tricked with simple schemes, such as scanning QR codes and depositing cash, highlighting the potential for misuse if proper controls are not in place.
Seth Sattler, Director of Compliance at DigitalMint suggests that stronger identity verification like photo ID and database checks is needed. This will help spot patterns, block criminals and prevent scams from spreading.
Crypto ATM Fraud is Rising Fast
Crypto fraud linked to cryptocurrency has increased in recent years. According to ABC news, in 2025, alone, the FBI reported that scammers stole more than $333 million from Americans using crypto-related ATM schemes. This number is a clear indication that the upward trend is clear and constant.
Victims are usually manipulated through phone calls or texts impersonating government officials, banks, or tech support. They are told they must withdraw cash and use a crypto ATM to pay fines, resolve legal issues, or secure their accounts, instructions that led to irreversible cryptocurrency transfers. There have been cases where victims have lost their life savings and got nothing left to survive.
Bans and Restrictions Begin to Roll Out
With these rising cases of fraud and theft, a wave of regulatory response began. In Spokane Washington, city officials banned crypto ATMs outright, forcing operators to remove machines within months due to the threat they posed to vulnerable residents.
Other U.S. states and cities like Arizona, Arkansas, Vermont, St. Paul, and legislation proposed in Indiana, are now pushing new rules that set transaction limits, fee caps, fraud warnings, and tighter consumer protection.
Lawmakers at the federal level are also acting. Proposals such as the Crypto ATM Fraud Prevention Act would need operators to register with the Treasury, set spending limits and mandate fraud-related customer confirmations and refundable protections in confirmed scam cases.
On a global level, regulators are opting for a different approach. In countries like New Zealand, the regulators are planning to ban crypto ATMs entirely to curb the risk of money laundering, while others like Australia are imposing stricter reporting rules and fines on operators.
Will These Measures Last?
Whether these bans and restrictions last or not is still uncertain. However, industry players argue that crypto ATMs provide legitimate access to digital assets and financial inclusion.
For example, Alex Davis, founder and CEO of blockchain company Mavryk, told CNBC, “Eliminating them may reduce certain fraud vectors, but it also removes one of the last public-access tools for financial privacy and cash-to-crypto conversion.”
However, regulators appear increasingly willing to tighten the rules wherever necessary or remove these machines altogether if fraud continues. The future of crypto ATMs may depend on whether operators can balance accessibility with strong consumer protection or not.
Also Read: FIU’s New KYC Guidelines for Indian Crypto Users and Exchanges
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