Story Highlights Senator Durbin introduces Crypto ATM Fraud Prevention Act. Over 1,233 US crypto ATMs were offline in early March. New global rules slow the spread of the cryptocurrency ATM network. The U.S. has seen a dramatic decline in its crypto ATM network just days after Illinois Senator Dick Durbin introduced the Crypto ATM Fraud Prevention Act. The bill aims to combat rising fraud in cryptocurrency ATM transactions by requiring operators to warn users of scams, develop steps to reduce losses, and equip law enforcement with the means to track illicit transactions. Through March 3, the US housed 79.9% of the world’s crypto ATM network, operating 29,731 machines. Yet between the first weekend in March and March 3, over 1,200 crypto ATMs in the US went dark without explanation,
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Emily John considers the following as important: ATM, cryptocurrency, Market News, shutdown, USA
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Story Highlights
- Senator Durbin introduces Crypto ATM Fraud Prevention Act.
- Over 1,233 US crypto ATMs were offline in early March.
- New global rules slow the spread of the cryptocurrency ATM network.
The U.S. has seen a dramatic decline in its crypto ATM network just days after Illinois Senator Dick Durbin introduced the Crypto ATM Fraud Prevention Act. The bill aims to combat rising fraud in cryptocurrency ATM transactions by requiring operators to warn users of scams, develop steps to reduce losses, and equip law enforcement with the means to track illicit transactions.
Through March 3, the US housed 79.9% of the world’s crypto ATM network, operating 29,731 machines. Yet between the first weekend in March and March 3, over 1,200 crypto ATMs in the US went dark without explanation, accounting for a net worldwide decrease of 1,100 machines. New installations in Europe, Canada, Spain, Poland, Australia, and Switzerland aside, the US saw the greatest drop as per the Coin Market Radar data.
Crypto ATM Scam Bill Introduced as Mass US Closures Take Hold
The sudden drop in operational machines comes at a time when crypto ATMs in the US have been facing increased regulatory scrutiny. Since mid-2022, penalties and new rules for unlicensed operations have checked the growth of the crypto ATM network. Even though 860 new ATMs were installed during February, the recent spate of shutdowns has put doubts about the future of these machines in the US market
There are 37,226 operational crypto ATMs globally today. The US is followed by Australia with 1,467 machines (3.9% global), and Canada in third position with 3,085 ATMs (8.3%). Although the market dropped recently, the US still leads the cryptocurrency ATMs market.
Senator Durbin’s bill comes following a recent instance of fraud where one of his constituents lost money through an operation using one of the machines. This captures the rising danger from crypto ATM transactions, with the legislation passed requiring the operators to become more proactive in responding to fraud, potentially shifting the regulation framework of crypto ATMs within the US. Though the reason behind the recent shutdowns is unclear, the timing has raised speculation of heightened compliance efforts. Some also suspect regulatory concerns on the part of operators.