More than 1,200 cryptocurrency ATMs mysteriously went offline in the United States during the first weekend of March, just days after a senator introduced the Crypto ATM Fraud Prevention Act to stop crypto ATM fraud.

On Feb. 25, Illinois Senator Dick Durbin proposed legislation to target fraud at crypto ATMs in the US, citing a recent incident involving one of his constituents. His proposal came the same month that 860 new crypto ATMs were installed in the US.

Still, in the first three days of March, the global Bitcoin (BTC) ATM network saw a net decline of 1,100 machines, with the US accounting for 1,233 of those losses. The closures were slightly offset by new installations in Europe, Canada, Spain, Poland, Australia and Switzerland, according to Coin ATM Radar data.

The US is home to the world’s largest crypto ATM network

The ATM closures caused a small dent in the US’s massive crypto ATM network.

As of March 3, the US hosts 29,731 crypto ATMs, representing 79.9% of all crypto teller machines worldwide. Canada and Australia take up the next two spots, with 3,085 ATMs (8.3%) and 1,467 (3.9%) respectively. 

Stagnant crypto ATM growth amid regulatory crackdown

Currently, 37,226 cryptocurrency ATMs are active globally. The growth of the crypto ATM ecosystem has stagnated since mid-2022 owing to evolving regulations and crackdowns on unregistered businesses.

Related: UK hands down first criminal sentence over illegal crypto ATMs

Durbin’s proposed legislation would require crypto ATM operators to warn users of scams to prevent fraud. Additionally, it will introduce measures to minimize loss of funds and empower law enforcement with tools to track illicit transactions.

Magazine: Elon Musk’s plan to run government on blockchain faces uphill battle