Crypto ATM Market Contracts as Regulators Clamp Down on Cash-to-Crypto Conversions

The number of crypto ATMs worldwide has dropped by over 31% since its peak in December 2022, according to data from Coin ATM Radar. This decline is even more severe in the US, where the number of installed machines has decreased by 43.6%. The global crypto ATM market was worth $356.72 million in 2025 and is expected to grow at a CAGR of 54.8% until 2034.

Arizona has been at the forefront of this crackdown on cash-to-crypto conversions, with its Attorney General Kris Mayes stating that her office has arranged for full refunds of $171,332 to 35 victims who had registered their complaints within 30 days. This is part of a larger effort to combat fraudulent activity tied to cryptocurrency ATMs and improve oversight.

Regulators are concerned not just about the number of scams occurring, but also about the potential for these machines to be used for illicit activities. According to TRM Labs, illegal acts make up approximately 1.2% of the cash-to-crypto volumes, which is nearly double its estimate for the larger crypto industry.

The contraction in the ATM network is unlikely to cause a direct shock to Bitcoin prices or global crypto liquidity, but it will have structural implications for the industry. Operators will face rising compliance expenses and stricter transactional regulations, while users will have fewer options to participate in the digital-asset market.