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Coinhub Bitcoin ATMs: Empowering America’s Crypto Enthusiasts, While Others Face Setbacks

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Amidst the growing popularity of Bitcoin ATMs, Coinhub Bitcoin ATMs is emerging as a leading player in the field, with ambitious plans to expand its network nationwide across major cities in the United States. 

According to a press release, the company aims to provide a convenient and secure platform for individuals to buy and sell BTC, catering to the increasing demand for accessible cryptocurrency services.

Coinhub Bitcoin ATMs strategically position their machines in various public places, including convenience stores, gas stations, and other high-traffic areas. This widespread placement ensures that individuals can easily access ATMs and engage in BTC transactions regardless of their proximity to traditional banking institutions.

The company’s expansion efforts aim to democratize access to Bitcoin by making it more readily available to a wider audience across the United States.

Despite the rising popularity of cryptocurrencies, many individuals remain hesitant to invest due to concerns about the complexity of the technology and the safe storage and management of digital assets. 

Coinhub Bitcoin ATMs directly address these apprehensions by offering a secure and user-friendly platform for buying and selling BTC.

Unlicensed Bitcoin ATMs Under Scrutiny: The Bitcoin of America Case

In contrast to Coinhub’s efforts, a recent incident involving another BTC ATM provider, Bitcoin of America, has raised concerns about unlicensed operations in the cryptocurrency space. 

The Connecticut Department of Banking took action against Bitcoin of America because it failed to obtain the necessary licenses to operate BTC ATMs within the state. 

The consent order was enforced after several consumers fell victim to a scam involving unlicensed kiosks, resulting in financial losses totaling $86,000. Following a criminal indictment, Bitcoin of America is winding down its operations in Connecticut.

The incident prompted a warning from the state’s banking commissioner, urging investors to exercise caution when using unlicensed crypto kiosks. Connecticut is also implementing legislation to regulate and protect consumers, demanding that digital currency kiosks obtain licenses as money transmitters.

The negative effects of geopolitical instability and increased scrutiny on unlicensed operations have overshadowed the overall BTC ATM network. 

However, the expansion of Coinhub’s BTC ATM network and its focus on competitive rates and exceptional customer service aims to counter these challenges and facilitate a seamless and secure experience for individuals interested in investing in BTC.

As the demand for cryptocurrencies grows, companies like Coinhub are at the forefront, offering innovative solutions that bridge the gap between traditional finance and the digital currency revolution. 

Related Reading | Solana’s Evolution: Shifting Towards Consumer Apps & Embracing Unique User Experiences

Walmart to host Bitcoin ATMs

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Walmart, a prominent name in the retail industry, has entered the crypto market and decided to host Bitcoin ATMs. The firm has now partnered with Coinme, a crypto ATM establisher, in order to work on this new venture.

Over 200 Coinstar kiosks have been set up, and now, Walmart is offering users to buy Bitcoin from its ATM (BTM) placed at different places. According to the report put forth by CoinDesk, the ATM machines are working as an editor from the firm bought a small quantity of BTC at Pennsylvania Walmart on Oct. 12.

Walmart allows people to buy BTC inside the store

According to CoinDesk’s report, any person can enter a WM store to buy BTC from the Bitcoin ATM placed inside the store. This is a very convenient way to buy BTC for those who are not looking to get into the technicalities of network selection or placing buying orders.

Walmart communications director Molly Blakeman replied to CoinDesk in an email,

“Coinstar, in partnership with Coinme, has launched a pilot that allows its customers to use cash to purchase bitcoin,” he said. “There are 200 Coinstar kiosks located inside Walmart stores across the United States that are part of this pilot.”

How it works

Coinstar is a widely known firm for providing gift cards in exchange for tokens, while Coinme specializes in BTMs. The system explained on the Coinstar website involves the user putting their cash in the BTM found in Walmart stores.

Thereafter, the customer will have to set up their Coinme account. In order for their voucher to pass, customers will have to complete the KYC or Know Your Customer process mandated by the government.

There is a catch here, though. The customer will have to pay 4% as a fee for the Bitcoin option, followed by a 7% fee for cash exchange. Followed by a rumor that LTC will be accepted at Walmart, the retail giant didn’t release a press release to announce its new venture, maintaining secrecy.

Bitcoin ATMs grew by 265% in the first two quarters of 2021

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Bitcoin [BTC] price might have taken an unexpected turn, the ATMs, however, are still growing. Over the past several years, cryptocurrency ATMs have seen tremendous growth. These Automated Teller Machines have multiplied quickly across the world.

According to the latest charts by Coin ATM Radar, these machines have grown from a mere 6,373 at the beginning of the year to 23,248 at the end of the second quarter. In short, the figures for ATMs have surged by 264.7% in the first two quarters of the year. Particularly in March-May, Bitcoin ATMs opened at a much rapid pace fueled by a frenzy in crypto trading that sent BTC prices above $60,000 for the first time in its decade-long history.

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Bitcoin ATMs grew by 265% in the first two quarters of 2021 3

Growth in Bitcoin ATMs

A quick history: It all started on the 29th of October 2013, when the Waves coffee shop in Vancouver Canada, opened a Robocoin machine which went to be known as the world’s first publicly available Bitcoin ATM. In the same year, Europe got its first-ever Bitcoin ATM that was installed in Slovakia. The United States followed suit with the country’s that went online a year later in a cigar bar in Albuquerque, New Mexico. It was removed a few weeks later. While Robocoin shut its operations down in 2015, it paved the way for these new machines in other parts of the world.

Leading the chart is the United States which hosts over 85% of the ATMs in the world. Currently, the country has around 20,000 ATMs. Canada comes in second with roughly 1,532, followed by the UK with 157 machines.

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Bitcoin ATMs grew by 265% in the first two quarters of 2021 4

Some of the top operators of these crypto ATMs that dominate the space are Bitcoin Depot with 3,391 and a market share of 14.6%, CoinCloud with 2,537, and a market share of 10.9%, and Coin Flip with 2,415 and a market share of 10.4%, among others.

Recently, Athena Bitcoin, which happens to be the operator of cryptocurrency-based automated teller machines, has revealed its intention to establish 1,500 new cash-to-crypto machines in El Salvador right after the country’s legislature passed a bill-making Bitcoin a legal tender alongside the US dollar.

Bitcoin ATM ‘Loopholes’ Exploited in Hong Kong, Trio arrested

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Automated Teller Machines [ATMs] has acted as the backbone of the retail payments landscape for over fifty years. Acting as a physical access point, ATMs have now made its way to the digital age money space we now know it as the cryptocurrency industry. Over the years, Bitcoin ATMs have sprung up at a highly impressive rate. And with it, the crimes.

In the latest development, the Hong Kong authorities reportedly arrested three persons linked with the alleged siphoning off $226,000 in Hong Kong dollars from six Bitcoin ATMs in 11 transactions. The police suspected that the arrested individuals are the”core members” of a “larger syndicate”.

According to the South China Morning Post report, the three males arrested were between 26 and 55 years of age. The two platforms reportedly suspected foul play and exploitation of “loopholes” in the Bitcoin ATMs after noticing cash withdrawals. The authorities were able to arrest the trio two days after cryptocurrency exchanges had filed a report.This development was first of its kind in the Mong Kok region

Following the arrest, the Superintendent of Hong Kong’s Cyber Security and Technology Crime Bureau [CSTCB], Wilson Tam reportedly stated,

“I cannot reveal what the loopholes are. But any bitcoin transaction needs verification. Maybe the ring bypassed the verifying process before taking the money.”

Tam further revealed to have offered to the two cryptocurrency companies to upgrade their systems.

Consistent growth of Bitcoin ATMs

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According to the Bitcoin ATM tracking website Coin ATM Radar, there were a total of 9,106 Bitcoin ATMs in the world while 52 of them are in Hong Kong. Interestingly, since the start of the year, Bitcoin ATM installations have doubled.

Increasing criminal activities tied to Bitcoin ATMs

While the expansion of the Bitcoin ATM marketplace has been nothing short of remarkable, it is the soaring criminal activity leveraging this space that has become a cause of concern.

Across the Pacific, Bitcoin ATMs in the US sent more funds to high-risk cryptocurrency exchanges than low-risk exchanges in 2019. This was found by a recent report by Cipher Trace, the percentage of funds from the US-based Bitcoin ATMs sent to this category of exchanges had grown exponentially.

According to the crypto-analytic firm, high-risk exchanges are classified as those which have a record of nefarious activities known for facilitating criminal activities and money laundering. And it was also found that as high as 8% of the US Bitcoin ATM payments are sent directly to high-risk exchanges.

Dismantle of Bitcoin ATM operation 

In another development, the U.S. Department of Justice [DOJ] last month revealed to have taken down a Bitcoin ATM operation worth $25 million. It also reportedly seized 17 machines along with some cryptocurrencies from a man who was not licensed for Bitcoin ATM operations.

The perpetrator, Kais Mohammad, further admitted laundering of millions of dollars of Bitcoins as well as cash

State-Owned Bank Launches 5,000 Blockchain-based Touchless ATMs to Curb COVID-19 Spread in Russia

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Russian state-owned bank, Sberbank is expanding the use of touchless blockchain-based ATMs in the country. The ATM machines use blockchain technology for security measures and the touchless functionality aims to curb the spread of highly communicable coronavirus pandemic in Russia.

The COVID-19 pandemic seems to be paving the way to a contact-free future lifestyle. From touchless payments, touchless travel, touchless toilet, and the latest, touchless ATMs. Touchless interactive technology has been slowly gaining grip, but the pandemic seems to be accelerating their adoption.

Contact-free ATMs adoption driven by Russian state-owned bank

Sberbank paid a hefty $108.5 million to purchase the blockchain-based contact-free ATMs in its efforts to curb the spread of coronavirus in the country. Interestingly, the ATM machines can be linked with popular mobile payment platforms such as;  Apple Pay, Google Pay, Samsung Pay, Huawei Pay, and the Russian Central Bank’s  Mir Pay.

Moreover, the touchless blockchain-based ATMs can be operated through the user’s mobile device, instead of manually operating the machine which poses a serious health risk in today’s world. Each ATM machine has the capacity to hold up to 14,500 treasury notes. They are equipped with a pattern recognition system and blockchain applications to ensure maximum security.

Although Sberbank is a big advocate of blockchain, it is not yet clear how the new ATMs’ use the technology. Back in 2018, Sberbank established a blockchain lab for innovation and tests the application of the technology in various operations. For example, Sberbank became the first Russian financial institution; to apply for a patent for a system that converts Repo to smart contracts.

Russia looking to criminalize cryptocurrencies 

Given that Sberbank is a state-owned bank, it shows that the Russian government wants to stay up to date with the latest technology and trends such as blockchain. In contrast, Russia seems not happy with the use of digital currencies such as Bitcoin in the country. 

According to a report by a local news agency, RBK, the Russian crypto bill which has been stalling for more than two years, might go through some modification to ban the use and issuance of digital currencies within Russia’s borders. The draft bill proposes a fine of up to $7,000 and a jail term of up to seven years.

Irish Crypto Firms Denied Banking Services due to State Delays

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According to a report by Irish Times, Irish crypto firms claim they are being denied banking services as a result of a new European directive yet to be implemented by the state. It’s been two years now since Irish firms that offer cryptocurrency services started complaining about having to open foreign bank accounts since they cannot do so in Ireland.

Irish laws don’t recognize cryptocurrency as a currency

Just the other day, Boinnex, a Bitcoin ATM machines provider which is headquartered in Cork city, saw its bank account with AIB shut down. The Irish crypto firm was notified via a letter back in October last year that the bank wants to end its relationship with the firm since digital currencies are not regulated in the country.

Indeed, Irish law does not regard digital currencies as a currency. In its defence, AIB Bank mentioned the delay in transposing the AMLD5 into law, which should have happened by the end of January.  Furthermore, the aforementioned delay was caused by the country’s general elections which took place early in February; and the ensuing negligence by political parties to determine a new administration.

Irish crypto firms forced to seek solace abroad

According to the financial services provider, entering into a business relationship with crypto-related firms is far from the bank’s risk appetite. As per the founder of Boinnex, Bryan Tierney:

“We’ve been forced to get a banking partner abroad. A lot of companies in the space are in a similar situation. Some of these foreign banks charge exorbitant fees as they know they’re the only show in town.” 

As per Mr.Tierney, the denial by the banking sector to serve Irish crypto firms has forced his; and several other firms facing the same challenge to open bank accounts in foreign countries. However, most of the foreign banks charge inflated fees, since they are aware of the monopoly advantage.

Bitcoin ATMs Surge In January As Bull Market Sheds Positive Light

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The concept of cryptocurrency adoption has been appealing to the community for a long time now. This feeling has also been propelled by the developments and updates in the industry.

Statistics have now shown that the adoption of Bitcoin has been on the rise due to a number of its peripherals gaining significant traction across the globe. Bitcoin ATMs have become all rage, and global numbers have started to grow.

According to sources, new Bitcoin ATMs were being set up in cities across several regions. Many of these were for convenience but some have also felt the need to showcase how user-friendly and efficient a Bitcoin ATM is.

More than 400 Bitcoin ATMs were set up all over the world in January 2020. This influx in interest, as well as the capital, was the main reason why the total number of Bitcoin ATMs was closing in on 7000.

The increase in the number of Bitcoin ATMs comes at a time when the price, as well as the market cap of the coin, has gone up since 2019. Bitcoin and its compatriots have had a great start to 2020 and the increased ATMs was an effect of that phenomenon. There were some period highs in the middle of 2019 but that had waned once the bear market started towards the fag end of the year.

Statistics showed that at the start of this year there were only 6377 ATMs present around the world. In a month’s time, the number of new machines set up jumped to 432 while the number of ATMs closed was 104. These numbers showed a 5.1 percent increase in  Bitcoin ATM space.

Since Bitcoin’s inception, the community around the cryptocurrency has grown by leaps and bounds. That has been evident in the number of companies foraying into the Bitcoin ATM space. Genesis Coin has the most number of ATMs with 16, followed by General Bytes with 62 machines. Several companies such as Coinflip Bitcoin ATMs and Bitcoin Depot that made news for installing completely new machines.

The United States has naturally taken the lead in the Bitcoin ATM sphere as the region was targeted by several fintech companies. In January, 325 new ATMs were installed in the US while five were added in Canada. The United Kingdom came in third place with two new ATMs in January. At the same time, some countries also saw a loss in the number of machines.

Austria reported that three ATMs were decommissioned in the country while the Netherlands shut down two locations. Other than Bitcoin, these machines also support cryptos such as Bitcoin Cash and even Dogecoin. BCH has become an ATM friendly crypto after the number of BCH supported ATMs increased by 4 percent in the last month.