Bitcoin ATM (crypto ATM)

Despite the name, most crypto ATMs are not connected to a bank: they are kiosks in shops, petrol stations or malls where a customer inserts cash and receives bitcoin or other coins at a wallet address, often scanned as a QR code. Some machines also let users sell crypto for cash. Operators set their own prices and limits.

They appeal to people without bank accounts or who prefer cash, and they spread rapidly in the United States from the late 2010s. Convenience comes at a price: markups over the market rate are commonly well above those of online exchanges. Operators must follow anti-money-laundering rules, including identity checks above set thresholds, and several jurisdictions have restricted or banned unlicensed machines.

Crypto ATMs have become a favoured tool for scammers. Victims are told by fake police, tax officials or romance contacts to withdraw cash and deposit it into a kiosk using a QR code the scammer provides, and the funds are gone in minutes. Regulators in several countries have issued warnings and introduced daily caps for new customers.