The vast majority of people who are unaware of blockchain technology and cryptocurrencies have stepped into the world of digital assets thanks to physical cryptocurrency ATMs. Thanks to the increasing popularity over the years, the number of ATMs exceeded 10 thousand, but today this number has started to decline.
According to Coin ATM Radar, which collects data on cryptocurrency machines, the number of crypto ATMs worldwide has decreased by 14% since December 2022. While a total of 39,179 machines were active at the end of the year, 1,587 different ATMs were closed in January 2023.
Although the number of ATMs disabled in February was limited to 275, it is noteworthy that 3,627 machines ceased to operate in March.
The amount of crypto ATMs has grown over the years as digital assets are increasingly accepted. However, the decline seen today leaves a question mark in the minds of crypto lovers.
Why Are ATMs Shutting Down?
There are two concrete cases about why crypto money machines are disabled. General Bytes, which owns 28% of the devices worldwide, suffered a $ 1.5 million attack in the past weeks. The company had to disable some of its machines.
Apart from the cyber attack case, a UK-based development also explains the current situation. Every week, major operations are carried out on cryptocurrency ATMs, which are not legally accepted in the island country. Increasing regulatory pressure around the world may also have caused ATM manufacturers to act more cautiously.