Any idea why the concept of crypto ATMs failed ? It failed to become big ? Is it because of strict goverment regulations ?
I remember a time where in the Philippines, if I were to cash out my BTCs, there are specific steps that must be followed and only a limited amount of ATMs are available to accommodate my request.
Probably one of the biggest limitations on why crypto ATMs relatively failed is because of its lack of demand and strict government regulations. Back in 2018, only a small amount of the population in the Philippines knew about the existence of cryptocurrencies. Additionally, the taxation of cryptos were not that fully implemented which made some banks hesitant on implementing further this kind of set up.
I agree with those who say they have not failed. However, in Europe I think they are on their way to see their use reduced since with the MiCA law they are going to have to implement KYC for any amount from September, although some have already implemented it. If they continue to charge these fees and also with KYC they will lose the main motive they had to be used.
Probably it depends per country? I have seen some developed countries where crypto ATMs were fully utilized by the community. On the other hand, in our country in the Philippines, only a few were able to use and take advantage of this privilege. This is perhaps the reason on why banks scrapped off this idea since only a few are using it.