by Aima Raza
One thousand two hundred crypto ATMs in the US stopped working at the start of March due to concerns about future laws targeting crypto ATM fraud.The shutdown took effect right after Senator Dick Durbin launched the Crypto ATM Fraud Prevention Act on February 25.
The proposed law comes to fight crypto ATM fraud after a fraud incident damaged the assets of Durbin’s constituents. The senator brought forward his proposal during February when the USA received 860 new crypto ATMs throughout different states.
During the first three days of March the worldwide Bitcoin ATM network lost 1,100 machines although it had been growing steadily. The United States experienced 1,233 ATM closures which overshadowed all other nations by a significant margin. Statistics from Coin ATM Radar indicate that crypto ATM growth in multiple countries made up for some losses in Europe, Canada, European Union members, and several other nations yet the U.S. took the largest cut.
Crypto ATMs Face Uncertainty
The closure of cryptocurrency ATMs has only affected a small portion of the entire crypto ATM operations in the United States. Texas maintains 29,731 crypto ATMs across its territory which represents 79.9% of worldwide ATMs on Mar. 3. 
After leading with the most cryptocurrency ATMs Canada shows up in second place with 3,085 machines representing 8.3% of global total but Australia ranks third with 1,467 ATMs making up 3.9%.
The worldwide total of operating crypto ATMs stands at 37,226 machines today. Since mid-2022 crypto ATM expansion has slowed down because new rules now monitor unlicensed business operations.
Through his proposed legislation Senator Durbin wants to create better safeguards for consumers using crypto ATMs. When this law takes effect it will force company operators to install scam warning systems for users. The bill wants to develop solutions for preventing criminal transactions in cryptocurrency ATMs and empower law enforcement with better monitoring methods against digital currency scams.
I’m on the Senate floor announcing new legislation—my Crypto ATM Fraud Prevention Act—to help stop fraud at crypto ATMs. Watch. https://t.co/JZqjfYkhat
— Senator Dick Durbin (@SenatorDurbin) February 25, 2025
Fraud Risks In Crypto ATMs
Industry experts tell us that crypto ATMs experience high rates of fraud because scammers deceive consumers into giving their money away. Scammers usually fake their identity to access users’ accounts or promote fraudulent investment schemes which they want users to pay through crypto currency immediately. Our new policies would deploy essential protection against such harmful activities.
No one knows for sure if crypto ATMs have shut down across the United States because of federal oversight but many people think new regulation will set the direction this sector will go. Due to new compliance standards crypto ATM operators will need to adjust operations which may affect their business growth and expansion.
Observers from the industry and customer base will check to see if strict rules influence crypto ATM availability and safety across both the US and other regions. The discussion between officials and companies about cryptocurrency requirements continues while new financial technologies advance.
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