In parallel with the fall in the broader cryptocurrency market, the growth of Bitcoin ATMs (BTCs) installed around the world was also affected by the stall for the first time in history.
According to data acquired by Finbold, there are 38,538 crypto ATMs in 77 countries, according to Coin operated ATM radar statistics
While this represents a marginal increase since the beginning of September, 38,458 is still a drop from the total number of installations as of August 1. Notably, the number at the date was 38,757, demonstrating the fact that cryptographic installations have not made any significant progress in nearly two months ago.
The revelation shouldn’t come as a surprise, as Finbold reported that the expansion of cryptocurrency ATMs around the world fell by 32% in the second quarter, from 2,362 to 1,600 machines.
There were 34,370 cryptocurrency ATMs at the start of the year, but after the first quarter that number has increased to 36,732. After the second quarter, 37,642 ATMs were installed.
Downside of the cryptocurrency market
The growing value of the market in 2021 has prompted an increase in the number of cryptocurrency ATMs installed; however, this model has since stalled. For example, Bitcoin’s price fell from its all-time high of around $ 68,000 in November 2021; the digital asset struggles to sustain support above $ 20,000.
Interestingly, Bitcoin recorded one of its worst performances in over a decade during the second quarter of 2022. According to research by Finbold, Bitcoin’s value fell more than 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 operations and reorganize their plans.
In general, cryptocurrency ATMs are helping to accelerate the widespread acceptance of various assets. However, it is essential to note that ATM transactions do not affect the available liquidity of the market; their sole purpose is to assist investors in acquiring cryptocurrencies for fiat money.
Where do cryptocurrency ATMs go from here?
With growing regulatory concerns, the future of the plants is of great interest. Some governments are preparing to legislate on a cryptocurrency regulatory framework to combat illegal activities such as money laundering.
Law enforcement has already begun to discourage the use of cryptocurrency ATMs. In November last year, the Federal Bureau of Investigation (FBI) issued a warning about crypto ATMs and QR codes used by hackers to deceive people.
In a separate development, the UK’s Financial Conduct Authority (FCA) demanded in March that all cryptocurrency providers in the nation immediately stop serving customers or face legal repercussions.