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Ruholamin Haqshanas
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Ruholamin Haqshanas
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More than 1,200 cryptocurrency ATMs across the United States mysteriously went offline during the first weekend of March, coinciding with the introduction of a new bill aimed at combating fraud in the sector.
On February 25, Illinois Senator Dick Durbin introduced the Crypto ATM Fraud Prevention Act, highlighting concerns over scams and illicit activities tied to crypto ATMs.
His proposal followed a case involving a constituent who fell victim to fraud.
New Bill Seeks Stricter Crypto ATM Regulations to Combat Fraud
The legislation seeks to require ATM operators to implement scam warnings, enhance fraud prevention measures, and provide law enforcement with tools to track suspicious transactions.
Despite 860 new crypto ATMs being installed in the U.S. last month, the sudden shutdown of 1,233 machines in early March led to a net decline of 1,100 machines globally, according to data from Coin ATM Radar.
While the U.S. experienced the most significant losses, new installations in Europe, Canada, Spain, Poland, Australia, and Switzerland slightly offset the decline.
If passed, the “Crypto ATM Fraud Prevention Act” would introduce a $2,000 spending limit for new users at a bitcoin ATM over a 24 hour period, while those wanting to withdraw $10,000 would have to wait over a two week period.
According to reports, the bill would mandate direct communication between users looking to transact over $500 and issue them a full refund should they report it to police within a 30 day period.
All other customers will be entitled to a minimum refund of any fees associated with the transaction.
Nevertheless, the United States remains the dominant player in the crypto ATM industry, hosting 29,731 machines, which account for 79.9% of all crypto ATMs worldwide.
Canada follows with 3,085 ATMs (8.3%), while Australia ranks third with 1,467 (3.9%).
Since mid-2022, the growth of the crypto ATM ecosystem has stagnated due to evolving regulations and crackdowns on unregistered businesses.
Lawmakers Call on Crypto ATM Operators to Combat Fraud
Last year, a group of U.S. Senate Democrats, led by Majority Whip and Senate Judiciary Committee Chair Dick Durbin, urged major cryptocurrency ATM operators to take swift action against rising fraud targeting elderly Americans.
At the time, seven Democratic senators, including Elizabeth Warren, issued a statement calling on 10 of the country’s largest crypto ATM firms to address growing financial losses from Bitcoin ATMs (BTMs).
The senators expressed particular concern for older Americans, noting that individuals aged 60 and over are more than three times as likely to fall victim to BTM-related scams than younger adults.
The letters were sent to the CEOs and top executives of Bitcoin Depot, CoinFlip, RockItCoin, Bitstop, Coinhub, Unbank, Athena Bitcoin, Byte Federal, Cash2Bitcoin, and Margo.
