Crypto ATM market could hit $2.58 billion by 2032: here’s why

The crypto ATM market could witness explosive growth over the next decade, potentially reaching $2.58 billion by 2032, according to a report by Research and Markets.

According to a Nov 6. research report, the crypto ATM market could grow into a $2.58 billion market within the next seven years with an average growth rate of 45.7% annually.

Researchers attribute this growth to the rising global acceptance of cryptocurrencies, as more people embrace the advantages of decentralized transactions, enhanced security, and lower fees.

This trend has led to an uptick in demand for crypto ATMs, which provide a convenient and direct way for users to buy and sell cryptocurrencies without needing a bank account or online exchange. 

Analysts add that regulators in some regions have begun implementing policies to encourage crypto adoption, further boosting market expansion for decentralized currency ATMs.

As such, this “regulatory support is enhancing the credibility of cryptocurrencies and encouraging the installation of crypto ATMs,” the researchers added.

Further, the report highlights that crypto ATMs are gaining traction across various sectors, including retail, travel, and financial services due to the inherent benefits offered.

ATMs are now commonly found in malls, convenience stores, and gas stations, making cryptocurrencies more accessible to general consumers.

Among other reasons, the report noted:

The increasing collaboration between crypto ATM providers and financial institutions is further driving the market growth, as it ensures the compliance and security of crypto ATM transactions.

Crypto ATM surge

The United States currently leads in terms of crypto ATM adoption, with approximately 31,422 machines installed nationwide, according to Coinatmradar data.

Canada follows with around 3,104 ATMs, and Australia ranks third with 1,204 machines, reflecting the technology’s growing global footprint.

One of the leading regions in terms of crypto ATM adoption is Mexico, which has seen a surge in Bitcoin ATMs, with installations expanding to major cities beyond Mexico City, including Monterrey, Querétaro, and Guadalajara, as well as popular tourist spots like Tulum and Playa del Carmen in Cancún. 

The growing appetite for Bitcoin ATMs in the region has drawn manufacturers like CoinFlip which recently expanded its network to Mexico, as part of its international growth efforts.

Increased scrutiny over crypto ATMs

Some countries, however, are approaching crypto ATMs with caution.

In September, the UK’s Financial Conduct Authority (FCA) initiated its first criminal case involving crypto ATMs, charging an individual for operating a network without proper registration.

At the time, Therese Chambers, joint executive director of enforcement and market oversight at the FCA said this case relates to regulations under the Money Laundering, Terrorist Financing, and Transfer of Funds Regulations 2017, warning that crypto ATMs are often exploited for illicit activities.

The FCA had previously shut down 26 unregistered crypto ATMs in July 2023, signaling a strict stance on regulating these machines within the UK’s borders.

Germany has also taken a proactive stance. In August, the financial regulator BaFin, in collaboration with police and the Bundesbank, seized 13 unlicensed crypto ATMs and nearly $28 million in cash across 35 sites. 

This operation targeted ATM operators without the necessary licenses, with officials warning that non-compliant operators face prosecution and potential prison terms of up to five years.

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