Before you set your sights on the closest Bitcoin Depot ATM (BTM), it’s a good idea to know the limits of the Bitcoin ATM. That's because these limits vary by operator, as do the levels of account verification. So today, we’re going to dive a bit deeper into the details of Bitcoin ATMs including why they exist, how they work, and what to expect.
Why Set Limits for Bitcoin ATM Levels?
Traditional banks set limits for security and practicality. Imagine pulling up to the ATM and trying to withdraw $5,000 in cash. You’re fighting a lot of variables like people in line behind you, watching you take out huge wads of cash. You’re also assuming the machine actually contains that much cash to dispense to you and others.
Now let’s pretend it’s a particularly blustery day outside. You punch in the numbers, and the ATM starts whirring to life. Click click chunk! Here comes your cash…and a huge gust of wind. You can imagine what happens next. The mechanism on the machine simply can’t grasp that much cash tightly enough to dispense it safely.
While BTMs work a bit differently, the principle is the same. These limits are there for your protection. They give you a safer, more secure experience. That's because you are potentially depositing large amounts of cash to convert to Bitcoin, some of our Bitcoin ATMs allow you to convert your Bitcoin back to cash for withdrawal and might be collecting some financial information that you wouldn’t want others to know.
Bottom line - these limits can benefit the consumer.
Bitcoin ATM Limits by Operator
We can’t speak for other operators, but here at Bitcoin Depot, we strive to provide the best security and support for our customers. That’s because we care about protecting your purchases. But that means it affects the amount you can purchase per transaction, and sometimes per day.
Minimum purchase amounts vary, but they’re typically around $20. Bitcoin Depot ATMs require a $20 minimum. The limits max out somewhere between $3,000 and $15,000 per day. Bitcoin Depot is proud to support a maximum purchase amount of up to $15,000, provided certain conditions are met.
Why Do Bitcoin ATMs Have Limits?
Many people still wonder why any limits are set at all for digital transactions. Rather than continuing to speak in general terms, let’s look at some of the specific reasons why these limits are in place.
Practicality
Just like the ATM at the bank, setting Bitcoin ATM withdrawal limits ensures that the Bitcoin ATM doesn’t run out of funds. This ensures that the machine is usable for many people and remains operational throughout the day without interruption. If one person withdraws all of the cash contained in the ATM, no one else can make a withdrawal until the machine is serviced. This promotes excellent customer service.
Security
This is of the utmost importance for Bitcoin ATM operation and client protection. If someone were to gain access to your key as part of a scam, the Bitcoin ATM limits ensure that they can’t drain your entire account before you can move your money or eliminate the risk.
Bitcoin ATM operators all have different security measures. Some larger companies, like Bitcoin Depot, have digital wallets linked to consumer accounts. The purchaser has to know the address of the wallet in order to use the Bitcoin ATM. Other companies use verification codes sent to your mobile device or require you to scan a QR code or driver’s license.
Compliance
Lastly, it is important for many Bitcoin ATM operators to comply with all applicable regulatory requirements[KE1][KE2]. Companies like Bitcoin Depot must comply with anti-money laundering regulations, and any Bitcoin ATM without certain verification procedures and identification protocols is unlikely to be in compliance with the law depending on the transaction amount. If they’re not complying with this regulation, it’s anyone’s guess what other regulations they’re not complying with, and that makes them unsafe to use.
Bitcoin Depot has implemented AML procedures at all Bitcoin ATMs. These AML procedures address the following:
- Creating internal controls to comply with the Bank Secrecy Act
- Training for personnel to understand their responsibilities under the AML program
- Designating a compliance officer to ensure daily compliance
- Conducting annual reviews or audits of the AML program
Safe Limits to Buying
Using a Bitcoin Depot BTM to purchase your Bitcoin is one of the fastest, safest, and most convenient ways to put crypto in your wallet. The Bitcoin ATM limits we implement are for your safety and also help us comply with the law while providing great customer service.
Find the closest BTM to you on our website and hurry out to use a Bitcoin Depot Bitcoin ATM for your Bitcoin purchases today. You’ll always find a Bitcoin ATM you can trust with us!
