So far, states like Indiana, Tennessee, and Minnesota have already put a stop to crypto ATMs in the US.
I still remember our chat about Tennessee's ban on these ATMs a while back here. Now, Delaware and New Jersey are making strides to pass laws that would completely outlaw the installation and operation of crypto ATMs. They're claiming the usual reasons, like the fact that these machines are often involved in scams and fraud.
If either of these two states ends up banning crypto ATMs, I'll make sure to update this thread and add it to the list. I’ll also tweak the title of this thread to "list of states that have banned crypto ATMs" so we don't have to keep creating new ones.
If they are making a decision to band bitcoin ATM, I will not oppose their plight towards this, as long as this decision does not affect Bitcoin or being banned for their citizens.
I don't see many people having interest in the use of Bitcoin ATM already, everything about it does not serve a good presentation on our privacy not to mention the challenges we have when it comes to locating one or even affording to make a transaction on the ATM because of the fees they charge.
They're not doing a good job, it's strange that they said that such ATM's are used for fraudulent activities, I believe the administration should rethink about such ATMs. Banning of crypto ATM's isn't going to be much helpful, but when a decision a taken by a state's government then who can say a thing.
It is because of the country you are from. You are either from a country that has no bitcoin ATMs or a country that have just one or two or very few bitcoin ATMs.
You can compare the bitcoin ATMs in your country to the bitcoin ATMs in the United States: https://coinatmradar.com/countries/
Although, I do not see it affect bitcoin because bitcoin can exist without the existence of bitcoin ATMs.
They are citing the same reason of fraudulent activities, do they insinuate that if its out of their control then it is used for fraudulent activities.
I dont think Delaware or new jersey has made any bitcoin strides ever so if they ban bitcoin atms it wont be shocking to me but give a resplendent reason than it can be used for Fraudulent activities.
Yes, I remember that we discussed this sometime back. I want to believe that this ban is just temporarily until the states can figure out how to curb the fraud being carried out through the bitcoin ATM. Until the structural issue that has made fraud through crypto ATMs to be attractive is addressed through stronger KYC requirements or transaction limits, states have little incentive to lift the bans.
Bitcoin ATM fees are atrocious, but some still consider it to be the best way of buying bitcoin, as they don't have to undergo the stress of verifying a centralised exchange and card just to buy bitcoin, and they consider the ATM the fastest even when they charge too high, and some are able to use fake numbers to pass some of the verification and somehow don't get captured by the camp so they believe is also part of protection their privacy to those who are using if it's helpful and worth it to them.
Honestly, what is the advantage of using a Bitcoin ATM? Since all of them are subjected to KYC compliance rules, and require you to give them information when it exceeds a certain amount (like $500), what's the point of paying a premium to an ATM for BTC when you can get it cheaper by going into a CEX or DEX?
This idea was fantastic until they were legally required to treat everyone a criminal.
Am quite surprised that the U.S who opted to own a reserve crypto currencies bank and instituted the use of cryptocurrency and Bitcoin in particular is now seeing the use of Bitcoin ATM as a no-go approach to owning Bitcoin.
Am sure this is no more than a concern of fraudulent activity leading to losses and the outrageous amount on fees that it cost to actually use these ATM machines to purchase Bitcoin.
It makes sense to keep this thread active and updated on more states that would enact this ban on Bitcoin ATM, because am sure the list would still contain more states filling for same bill through their various legislative committees.
Bitcoin being an asset which government do not have control over it's daily transactions. I knew that someday there will be a plan by government to start framing news which will be used as an allegation to ban its operations in certain regions gradually. Yet one thing government needs to understand is the fact that before Bitcoin came into existence, the issues about fraud still existed. And outrightly banning Bitcoin ATM won't stop the issues about fraud. As it would have been far more better if this was regulated, whereby government receive a certain percentage for all transactions made on the Bitcoin ATM machine.
However, inasmuch as people are still able to buy and sell Bitcoin online, without restrictions by the government. But only a ban on its physical ATM. Then, It's very okay for me.
the fact that bitcoin ATM machines are being banned because of fraudulent activities, it would certainly not affect bitcoin in anyway because we are looking at a big disadvantage to the public not bitcoin. This indeed signify the insecurities of having ATM machines basically true talk bitcoin is supposed to be private....
so yeah while it wouldn't affect bitcoin in anyway still if banning means protecting the few user's who make use of it not to lose their money then this is definitely considered the right thing to do. That's just it...
Alright.. same complaint as others. Its fine though at least they can rule out Bitcoin is being used as Scam through its ATM even though its not the best solution,
Sending from ATM to a scammer would likely be CEX to self-custody unless it doesnt require KYC, aggressive decisions when it comes to BTC , it wont wont solve anything.. best solution would likely be banning usage of Devices (like PC , Mobile phones..) but that will be too hash isnt it?
Just wondering if thats the only way people get scammed in those States.. what about the scam coins created by Celeb, public figures and even politicians.
They can go ahead with the bitcoin Atm bans but as long they're not instituting stricter policies that're to restrict the masses from using bitcoin the adoption atmosphere will still be convenience to friendly encourage the adoption.
After all the digital finance transactions can be facilitated and pdevices d with our personal devices which the privacy service even strengthens the security while the exposure of the Atm user' may set them at risks to the public.
At least the cause of the authorities actions of the Atm bans seems genuine by preventing fraudulent activities being executed through the machines. And perhaps the action is better than does governments restricting bitcoins in their territories.
Not sure how genuine they are, but if they're serious about scams prevention they should also spend money on education, spreading awareness about of scammers operate, and so on. Making a single web page detailing how scammers operate is probably not enough. Not only removing the easy to access tools. From my experience with scammer and being scammed in the past, they'll definitely utilize other stuff to scam people sooner or later. My late grandma was scammed through telephone calls and they request us to send money through ATMs too. I can't imagine them removing ATM because of that, for example. Even though the number of scams is high.
Gift cards are being used for scam much more frequently than bitcoin ATM yet it's still available in stores.
Every youtube videos about exposing scam phone calls, always ask for gift card and I rarely see bitcoin ATM being used for their scheme.
Yet, it's bitcoin ATM that is getting banned.
Reports have shown that more than 50% of these victims of this Bitcoin ATM fraud are 50 years and above. This might point to the fact that ignorance is the major reason why people become victims of these Bitcoin ATM scams. Most of these people at this age don't have good knowledge of the crypto space so they are easily deceived and scammed. Instead of outrightly banning Bitcoin ATM which would incur losses for the company, the government should have increased Bitcoin ATM use awareness.
From what you've personally just said here, I'm even more convinced to find this bitcoin Atm stuff more as a vulnerable means to scam people.
I'm not in total support of the ban though, but carrying on the action as a prior to safe people's lives and funds is most considerate here. I can remember the news shared here sometimes ago about scammers going to the bitcoin Atm spots and uses their malicious tools in their mode of operations to extracts some of the Atm user's data's and stole their funds.
If I can remember, they said the scammers gained access to the victims wallets the review of histories of the recent users of the bitcoin Atm.
You can also consider the endangerment of the public Atm machine users in a public environment too.
I agree.
The advantages were there until we all started being treated like criminals. Now the only advantage is for the scammers manipulating grandmothers into sending them money. I wonder how these ATMs still even exist. I would have said they did because some people would pay for their privacy but we go back to the same Know Your Customer problem.
Nowadays these are machines to send money to scammer indians. That is pretty much it.
A list is a great idea. Although you should also add other countries that had ATMs and have also banned BTC ATMs, like the UK, etc. That would be great to have. Create a list and then, under the countries listed, you can add places where they have been banned. Although if a few states have taken this initiative in the US, the others will likely follow.
I have never used one because we don't have any here, but even if we did, I would still prefer P2P because the fees are too high with these ATMs.
I don't know if anyone from this forum has ever used BTC ATMs and what they think about them, but due to the high fees and the chances of getting robbed or scammed, which are also high, a lot of people don't consider them, so I don't think it is that concerning!
I think the only advantages for having that Bitcoin ATM is the convenience, but aside from that I think nothing because they ask more higher fees and people need to undergo with those processes mentioned.
If the government find out that this is been widely used for illegal matters or other fraudulent schemes, then will agree with them to take counter actions with those machine for safety of their people.