In line with the fall in the broader cryptocurrency market, the growth of Bitcoin (BTC) ATMs installed around the world has also been affected by the halt for the first time in history.
According to data obtained by Finbold, there are 38,538 crypto ATMs in 77 countries, as of Coin ATM Radar statistics retrieved 23 September 2022.
While this represents a marginal increase since the beginning of September, 38,458 is still a drop from the total number of installations on August 1st. Notably, the number on the date was 38,757, which shows that crypto installations have not made any significant progress in almost two months since.
The revelation shouldn’t come as a surprise, given that Finbold reported that the expansion of cryptocurrency ATMs worldwide fell by 32% in the second quarter, from 2,362 to 1,600 machines.
At the beginning of the year, there were 34,370 cryptocurrency ATMs, but after the first quarter the number increased to 36,732 units. After the second quarter, 37,642 ATMs were installed.
Decline in the crypto market
The growing value of the market in 2021 led to an increase in the number of cryptocurrency ATMs being installed; However, this pattern has stalled. For example, Bitcoin’s price fell from its all-time high of around $68,000 in November 2021; the digital resource has trouble maintaining support above $20,000.
Interestingly, Bitcoin saw one of its worst performances in over a decade during the second quarter of 2022. According to research from Finbold, the value of Bitcoin fell by over 56% during the quarter.
As a direct consequence of the market crash, several companies in the cryptocurrency industry have had to revise their business strategies. In anticipation of a possible future market recovery, some organizations have been forced to stop their activities and reorganize their plans.
In general, cryptocurrency ATMs are helping to accelerate the widespread acceptance of various assets. However, it is important to note that ATM transactions do not affect the market’s available liquidity; their sole purpose is to help investors acquire cryptocurrencies in exchange for fiat cash.
Where do cryptocurrency ATMs go from here?
With growing regulatory concerns, the future of the installations is of great interest. Some governments are preparing to legislate a cryptoregulatory framework to combat illegal activities such as money laundering.
Law enforcement officials have already begun discouraging the use of cryptocurrency ATMs. Last November, the Federal Bureau of Investigation (FBI) issued a warning about crypto ATMs and QR codes being used by hackers to scam people.
In a separate development, the Financial Conduct Authority (FCA) in the UK in March demanded that all crypto ATM providers in the country immediately stop serving customers or face legal consequences.