Bitcoin ATM Market to Grow $123M, While Russian & Zimbabwe’s Struggling for Existence

A new study reveals a bright future for the Bitcoin and crypto ATMs in the coming five years as it is expected to rise over 8 times. Meanwhile, Russian authorities crack down on 22 Bitcoin ATMs of BBFpro on an ongoing investigation and Zimbabwe’s machine gets dried up of all the cash.

Bitcoin ATM market to grow 8-fold while the US remains the leader

Currently, the Bitcoin ATMs in the world have reached just above 3,600. Reportedly, till last year, this market has been worth about $6.8 million and has grown to $16.3 million in 2018. Moreover, in the past few months, it has even risen over 50 percent.

So, it only makes sense as reported by a recent study by MarketsandMarkets, that the global crypto ATM market will hit $144.5 million in the coming five years i.e. 2023. This would mean a rise of more than 8 percent of the market’s current valuation.

Given the fact that the awareness and adoption of bitcoin and altcoins are constantly growing, it can certainly be expected of this market to grow by $123 million in this five-year time span. Furthermore, the market will grow at a compound annual growth rate (CAGR) of 54.7% from now to 2023.

Though one-way ATMs currently dominate the market at 62.49%, the study says two-way ATMs that allows both buy and sell option from one device to enjoy a higher CAGR against one-way ATMs. Also, the display segment is further expected to emerge in terms of hardware.

As for the geographical dominance, North America will keep that position having more than 73% of the share at the moment, with the US as the leader. The report further notices,

“In 2017, the Government of Mexico declared bitcoin legal, and it would be regulated by the Fintech Law. In addition, Canada has recorded extensive start-up activity, especially for cryptocurrency.”

Also, read: Bitcoin, Ethereum, Ripple Price Analysis for the week August 27 to September 02

Russia crackdown in effect, seizing 22 bitcoin ATMs

Russian authorities have confiscated all of 22 Bitcoin ATMs spread throughout the 9 cities, run by the operator BBFpro without any warning. As per Artem Bederev, the CEO of BBFpro:

“I was told verbally that the inspection would take at least six months and that the ATMs wouldn’t be returned until it’s finished.”

Apparently, the Russian authorities are looking for all the details viz. KYC and AML processes, taxes, and exchange rate details. Sarkis Darbinyan, the legal representative for BBFpro claims legal compliance and intends to appeal the confiscation, further sharing:  

“There is no ban on the purchase of cryptocurrency in the current legislation. The company complies with all the procedures established by law, it pays taxes, and even identifies users despite the absence of such mandatory requirements.”

Zimbabwe ATM runs out of cash

Meanwhile, Zimbabwe, which is struggling with constantly rising inflation rate has no cash to dispense in the Bitcoin ATM machine in the Central Harare. Back in April, when Golix activated the ATM, it said:

“After realizing that the public is still struggling to understand or in some cases access bitcoin, we felt that the bitcoin ATM would be a huge and necessary step towards engaging people on how they can use cryptocurrencies for their daily business.”

However, this time Nhlalwenhle Ngwenya, the spokesperson hasn’t commented anything on the situation.

Last year, Golix saw a lot of action and the Bitcoin price even doubled, however, with central bank’s notice to the financial institutions to cut their ties with the exchange has affected fiat withdrawals. Though Bitcoin and crypto are getting a boost in the region due to high inflation in the country, the legal consideration is still far off.