Governments around the world are paying more attention to Bitcoin ATMs due to concerns about their involvement in illegal activities.
Countries like New Zealand, Australia, the UK, and the US have raised alarms about these machines being used for scams, money laundering, and other financial crimes. Although no complete bans have been put in place, there is increasing regulatory pressure that may lead to stricter rules in the future.
In New Zealand, law enforcement has called for immediate action against Bitcoin ATMs. They have mentioned these kiosks in a recent National Risk Assessment, linking them to fraud, drug trafficking, and extortion. Australia is also taking steps to regulate these machines, indicating a broader effort to control their use.
In the UK, the crackdown on unregistered crypto ATMs has intensified. A London court recently sentenced a man to four years in prison for running unregistered Bitcoin ATMs, highlighting the seriousness of the issue. Scottish authorities have warned citizens about scams related to these kiosks, further emphasizing the risks involved.
In the US, the approach is leaning toward stricter regulations instead of outright bans. For example, Nebraska has introduced a bill that sets transaction limits, licensing requirements, and compliance rules for Bitcoin ATMs. Governor Jim Pillen has stressed the importance of security, stating that while cryptocurrency is a significant industry, measures must be in place to prevent criminal exploitation.
