On May 2, 2013, the world’s first Bitcoin ATMs started operating in Vancouver, Canada and San Diego, California. Bitcoin ATMs are machines that allow users to convert their credits into cash and vice versa. After a glorious start, the Bitcoin ATM installation numbers have been on a decline since the beginning of 2022.
The decline in the number of BTC ATMs installations is predictable. The regulator’s hesitation over crypto adoption as well as El Salvador’s possible Bitcoin experiment failure might be the reasons. According to regulators, the use of cryptocurrency in money laundering and terrorist funding is the main reason for the delay in crypto regulations.
According to Coin ATM Radar, the year 2021 saw the greatest increase in BTC ATM installations worldwide. El Salvador adopted Bitcoin as legal tender in 2021, being the primary reason for the explosive growth of Bitcoin ATMs. The apparent decline in crypto ATM installations might be attributable to a reduction in the number of new nations willing to accept and integrate the Bitcoin ecosystem.
On March 11th, the UK’s top financial regulator issued a warning to bitcoin ATM operators, advising them to shut down or face legal action. According to the UK watchdog, all crypto ATMs must follow anti-money laundering standards and register with the agency. Since none of the enterprises currently operating crypto ATMs in the country have done so, the FCA issued a closure order.
According to a new study conducted by the National Bureau of Economic Research (NBER), a non-profit research organisation, Bitcoin adoption has failed to take off in El Salvador. The failure has only amplified the existing resistance of the regulators regarding cryptocurrencies. The crypto ATM net change declined to 1,687 in January 2022, from a high of 1,969 in December. With three-digit changes in February (970), March (757), and April (739), the net change in crypto ATMs has been on the decline.
According to Coin ATM Radar, the US consists appx. 87.9% of the world’s Bitcoin ATMs. The present crisis is the absence of engagement from rising countries. As if the number of crypto-friendly countries increases, so does the number of new crypto and Bitcoin ATMs. On April 26, the 14th Bitcoin ATM was installed in Mexico’s Senate building, illustrating the country’s rising interest in the crypto industry.
Mexico's 14th Bitcoin ATM is located in the Senate's building in the capital Mexico City.https://t.co/Qv78L9R2mW
— CryptoPotato Official (@Crypto_Potato) May 1, 2022
However, until other governments step up their efforts to promote crypto use, it will be impossible to bring the Bitcoin ATM trajectory upwards.
