Coinpaprika 2025-03-18 08:16:28

Global Crackdown on Bitcoin ATMs Gains Momentum

Governments worldwide are increasing scrutiny on Bitcoin ATMs , citing concerns over their use in illegal activities. Authorities in New Zealand, Australia, the UK, and the US have raised alarms about their potential role in scams, money laundering, and other financial crimes. While no full-scale ban has been implemented, growing regulatory pressure suggests tighter restrictions may be on the horizon. New Zealand law enforcement has called for urgent action, mentioning Bitcoin ATMs multiple times in a recent National Risk Assessment. Authorities claim these kiosks are linked to fraud, drug trafficking, and extortion. Neighboring Australia has also initiated a crackdown, signaling a broader effort to regulate these machines. In the UK, efforts to combat unregistered crypto ATMs have escalated. A London court recently sentenced a man to four years in prison for operating unregistered Bitcoin ATMs, calling it a serious offense. Scottish authorities have also issued warnings to citizens about scams linked to these kiosks, reinforcing concerns about their misuse. Meanwhile, the US is moving toward stricter regulations rather than outright bans. Nebraska recently introduced a bill imposing transaction limits, licensing requirements, and compliance rules for Bitcoin ATMs. Governor Jim Pillen emphasized the need for security, stating that while cryptocurrency is an important industry, safeguards must be in place to prevent exploitation by criminals. Although no government has yet launched an outright attack on Bitcoin ATMs, regulatory moves suggest a growing consensus that these kiosks pose risks . If Bitcoin ATMs continue to be associated with financial crimes, they could face severe restrictions worldwide, potentially reshaping their role in the crypto ecosystem.