History and Development of the World's First Cryptocurrency ATM

Cryptocurrency ATMs have become a significant step in the accessibility of digital assets. The first-ever cryptocurrency ATM is not just a technical device but a historic milestone marking the moment when cryptocurrencies moved beyond the online space into the real world.

From history: how the first cryptocurrency ATM was created

The first cryptocurrency ATM in the world was installed in October 2013 at Waves Coffee Shop in Vancouver, Canada. This event marked the beginning of a new era in financial technology. The device, produced by Robocoin, allowed people to physically exchange cash for bitcoins for the first time without the involvement of traditional financial institutions.

Following the Canadian experience, similar installations began appearing in other countries. In December 2013, a cryptocurrency ATM opened in Europe, in Slovakia, demonstrating growing international interest in the technology. Despite initial challenges with regulation and practical limitations, the idea quickly gained popularity.

What is a cryptocurrency ATM

Cryptocurrency ATMs, often called BTM (Bitcoin ATM Machine), are specialized devices that operate similarly to traditional ATMs but work with digital assets. However, their architecture is fundamentally different: while a regular ATM is connected to the banking system, a cryptocurrency ATM interacts directly with the blockchain via cryptographic keys.

BTMs allow owners of digital assets to cash out cryptocurrencies and, in the opposite direction, buy bitcoins with cash or bank cards. There are two main types of cryptocurrency ATMs: one-way devices supporting either buying or selling cryptocurrencies, and two-way machines enabling both operations.

How it works and regulation

The operation of BTMs is based on interaction with the user’s public key on the blockchain. When a visitor deposits cash or uses a debit card, the device transmits cryptocurrency to the specified bitcoin address. All transactions are recorded on the distributed ledger of the blockchain, ensuring transparency and security of the operation.

With the expansion of the cryptocurrency ATM network, regulatory questions have arisen. Government authorities have established that BTMs must operate in accordance with rules applicable to traditional financial institutions. In the United States, cryptocurrency ATMs are required to register with FinCEN (Financial Crimes Enforcement Network) and comply with AML (Anti-Money Laundering) requirements under the Bank Secrecy Act (BSA).

These requirements include verifying the user’s identity. To complete a transaction, especially for large amounts, users must provide a phone number, scan an ID, or even leave biometric data. Daily transaction volume limits are introduced to prevent money laundering and illegal funding.

Global distribution and current situation

As of the early 2020s, over 28,000 cryptocurrency ATMs are operating worldwide. The vast majority—more than 90 percent—are concentrated in North America, particularly in the United States, where the regulatory framework is the most developed and predictable. This distribution reflects both the historical leadership of the US in the cryptocurrency industry and the economic feasibility of installing such equipment.

Step-by-step guide to buying cryptocurrency via ATM

The process of purchasing bitcoin through a cryptocurrency ATM consists of several steps.

Preparation and identification. First, you need to create a digital wallet to store cryptocurrencies, which will generate a unique address for you. This address serves as the recipient of the transferred assets. To find the nearest device, you can use specialized maps such as Coin ATM Radar or Bitcoin ATM Map.

Identity verification. At the next stage, the device will ask for your phone number and to enter the received confirmation code. This is necessary to comply with regulatory requirements. You will also need to select which cryptocurrency you want to buy (if the ATM supports multiple options) and specify the amount.

Entering wallet details. Most modern cryptocurrency ATMs support scanning your wallet’s QR code. This minimizes the risk of input errors and speeds up the process.

Depositing funds and completing the transaction. Insert the required amount of cash or use a bank card. Check the exchange amount and confirm the operation. Transaction processing usually takes from ten minutes to an hour. The received bitcoins will be credited to your address after network confirmation.

Selling cryptocurrency via cryptocurrency ATM

The operation of selling cryptocurrency is functionally the reverse of buying. The user scans their wallet’s QR code or manually enters the address, verifies their identity (which, depending on the country and transaction amount, may include scanning an ID, taking a photo, or fingerprinting), sends cryptocurrency to the address specified by the ATM, and receives an equivalent in the national currency.

Some devices dispense cash immediately after receiving funds, while others require completing a verification process before cash withdrawal. In any case, be sure to keep the receipt confirming the operation for record-keeping purposes.

The future of the world’s first innovative solution

The story of the first cryptocurrency ATM at Waves Coffee Shop demonstrates how revolutionary ideas materialize into practical tools. From an isolated pilot project in 2013 to today’s network of several tens of thousands of devices, cryptocurrency ATMs have become a symbol of integrating digital assets into everyday life. The development of this segment continues, with ongoing improvements in verification technology, expansion of supported cryptocurrencies, and adaptation to local regulations across various jurisdictions.