WASHINGTON– More than 80% of the world’s bitcoin ATMs are found in the United States and, of those, most appear to be clustered in Black, Latino and lower-income communities, similar to payday lenders and check-cashing operations, according to a new report.
In an opinion piece published in the Financial Times, Dedrick Assante-Muhammad, president of the Joint Center for Political and Economic Studies, wrote that “providers have denied targeting areas based on any racial profile. But the apparent disproportionate placement is increasingly being recognized as a cause for concern.”
Assante-Muhammad argued the structure and operation of bitcoin ATMs pose a risk to the neighborhoods where they are found, noting the machines are primarily one-way, providing solely cash-to-bitcoin transactions.
“This essentially locks consumers into a volatile asset with no way to switch their cryptocurrency back to dollars,” he stated.
No Mention in New Bill
Despite the apparent risks, Assante-Muhammad added, there is nothing in the recently passed cryptocurrency legislation, the GENIUS Act, to offer consumer protections from issues posed by bitcoin ATMs.
He also cited an April FBI report that found there were 10,956 complaints connected to bitcoin ATMs in 2024, a 99% increase year over year.
That report further found a significant rise in cryptocurrency fraud, with at least $9.3 billion in losses reported in 2024, up 66% from 2023. Those losses were related to investment scams, extortion, sextortion and fraudulent activity involving cryptocurrency ATMs and kiosks.
