What is a crypto ATM? How bitcoin machines work and what they cost
By SendPay Business · · 2 min read
A crypto ATM is a machine, often in a shop or petrol station, where people buy crypto with cash or a card, and sometimes sell it for cash. Despite the name it is not connected to a bank account like a normal cash machine.
How a crypto ATM works
- The customer picks a coin, such as bitcoin, on the screen.
- They show or scan a crypto wallet address, often as a QR code.
- They put in cash or pay by card, and may be asked for ID.
- The machine's operator sends the crypto to that wallet address.
Why the fees are high
Crypto ATMs usually charge much more than an online exchange, through a fee and a price above the market rate. Checking the total cost against an online price before paying shows the real difference.
Scams linked to crypto ATMs
Fraudsters often tell victims to pay a 'fine', a 'safe account' or an 'investment' through a crypto ATM, because the payment is hard to reverse. No real bank, tax office or police force asks people to pay by crypto ATM.
The rules differ by country
In the UK the FCA has said that no crypto ATM operator is registered with it, so running one there is illegal. Other countries allow them with a licence or registration. The rules change, so check the regulator in each country.
Where SendPay fits
SendPay does not run or supply crypto ATMs. SendPay platforms let your customers buy, sell and hold crypto inside your own branded app, with assets held with regulated partners and a trading fee you set. SendPay tells you in writing which licences apply to your platform before you pay.
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This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.