You can’t buy unlimited amounts of Bitcoin at Bitcoin ATMs–also called BTMs. No two operators are the same in how they handle their Bitcoin ATM limits, and the numbers may seem arbitrary or hard to find. In this article, we break down everything you need to know about Bitcoin ATM limits, what they range from, and why they exist.
Bitcoin ATM Buy Limits By Operator
Bitcoin ATM operators set their own upper and lower limits, but they “must register with the Financial Crimes Enforcement Network (FinCEN) and comply with anti-money laundering provisions of the Bank Secrecy Act (BSA),” according to Investopedia.
Most Bitcoin ATM operator buy limits range from $5-$20 per transaction as a minimum, and $3,000-$9,000 per day as a maximum. Be prepared, some operators require higher levels of account verification to reach the full maximum. Coinsource’s range is $5 – $5,000 per day with normal verification, and up to $8,500 with advanced identity verification.
Why Do Bitcoin ATM Limits Exist?
Bitcoin ATMs enforce limits for three reasons: practicality, security and compliance.
Practicality
Practically speaking, the ability to withdraw as much money as we want from a Bitcoin ATM means it could run out of money, preventing subsequent customers from withdrawing cash. Placing limits on withdrawals in particular allows the operators to be able to keep cash in their machines for more than just one individual to withdraw. This allows more people to use the machine.
Additionally, with purchases, all machines have a maximum amount of cash they can store. The operators set limits for purchases in order to keep the machine up and running all the time. This way, the Bitcoin ATM won’t close because the money storage is full.
Security
Bitcoin ATMs just don’t have the same issues with security like banks do. Most consumers use their banks’ credit and debit cards regularly. Cashiers handle these; customer representatives request their numbers via phone; and we save them to online accounts. Without limits, someone could snag your debit card and withdraw your entire account.
Yet, this is unlikely with Bitcoin for many reasons. For one, all regular ATMs operate the same way: Insert a card, and withdraw money, but different BTM operators have different processes for withdrawals. Coinsource requires Bitcoin ATM users to know their digital wallet’s address. Other operators might request a phone number and send a verification code. Still others use QR codes or scan drivers’ licenses. Different procedures make for a less hackable product.
To keep customers safe, Bitcoin ATM operators place limits in place to stagger the volume of Bitcoin that can be purchased or withdrawn if someone gains access to the required information, or if a customer falls prey to a scam.
Compliance
Bitcoin ATM operators set purchase limits on Bitcoin as well as withdrawal limits to comply with anti-money laundering regulations. These purchase and withdrawal limits vary by operator in order to be in compliance, but beware that if there are no limits at a specific Bitcoin ATM, it very well may not be compliant with the law. By obeying anti-money laundering rules, Coinsource (and other compliant operators) are ensuring the safety and security of their customers and obeying the law.
More Questions on Limits?
That concludes our discussion on limits. If you have any other questions about limits, contact our support team! We’d be happy to help.
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Coinsource is the world leader in Bitcoin ATMs. With a focus on compliance and ease of use, Coinsource is aiming to bring Bitcoin to the masses. Follow for blogs about Bitcoin, finance, company updates and Bitcoin ATM information!
