Peter McCormack in his series of podcasts covers bitcoin ATM operations from various angles. If you are looking into operating of bitcoin ATM’s the full series of 5 episodes will be an interesting listen.
The first episode is with Gil and Eric from Athena Bitcoin, one of the largest operator on the market. They also one of operators who expanded business over national border and installed ATM’s in Argentina and Colombia.
Gil and Eric met 5 years ago and thought about business opportunities of getting into the money flow related to cryptocurrencies. In late 2014 they started a business with several ATM’s in Chicago area and saw an immediate demand. Then expanded business to other states and countries with currently 65 ATM’s in the U.S. (in 8 different states), 22 in Colombia, 11 in Argentina, and are looking to expand into Mexico.
In this interview you will hear Daniel Polotsky, the CEO of Coinflip Bitcoin ATM’s, talking about his introduction to the crypto and Bitcoin space, as well as regulations and finance.
At first, he tells an interesting story about how he got the idea to get into the crypto ATMs. Considering that in the beginning, crypto ATMs were not at all user-friendly, he had to turn to a website called LocalBitcoins and organize meetings with people so they could trade Bitcoin in person, for cash. On one of those meetings, he started talking with the person he met and after realizing that, as they put it: “if you meet too many people in a Starbucks you’re probably eventually gonna get killed“, they decided that there is no better way to trade in crypto than ATMs, and so they went for it.
During the recent years there was natural growth in two industries — bitcoin ATM installations reached almost 6000 as of end 2019 and cannabis industry legalization was happening steadily over time in various US states. In this article we check how the two industries fit together and factors that can be beneficial for both sides from synergy.
In this interview streamed live on 16 October 2018, we have a chance to hear Martijn Wismeijer from General Bytes answering questions about Bitcoin ATM’s.
Martijn states that he got into crypto somewhere in 2010, while he was designing home banking systems. When he discovered Bitcoin, he thought it was like Napster for cash and, as he says, he was hooked from day one. Eventually, he started operating Bitcoin ATM’s. Before he joined General Bytes, he did the marketing for them, but as he says, that was easy since you have a great product to sell. He also points that, although he considers himself as a Bitcoin maximalist, their ATM’s embrace all crypto, and it would be bad if they were to decide for their customers on what crypto to use. The company grew over 5 years and now they are 29 people working for General Bytes.
Article is provided by Jennifer L. Moffitt, a privately practicing attorney. Contacts can be found at the end of the post.
In the United States, virtual currency, such as Bitcoin and other similar coins, and virtual currency exchanges have been subject to federal regulations, with taxation and financial crimes the most prominent regulatory issues. However, it is at the state level that regulation of virtual currency has been most contradictory. The U.S. states have mixed responses to the emergence of cryptocurrency. Some of the states have ignored cryptocurrency by not implementing or amending any laws that address virtual currency. However, other states have taken action with some states somewhat hostile towards virtual currency while other states are more welcoming. In a number of states, the response towards cryptocurrency is currently ambiguous with no actual position taken. This discussion will attempt to categorize regulations by restrictions placed on virtual currency and identify states by category of regulation. In addition, the implications and effects of widely divergent state level legislation and regulations will be examined.
State Level Cryptocurrency Regulatory Tools
There are several regulatory tools used by states to regulate and control virtual currency. These include money transmission laws, licensing requirements and regulatory guidance. A brief summary of these tools is provided below.
In this article we look at one of the most important problems bitcoin ATM operators have — finding bank relationships and opening a bank account.
At the end of the post there is a company mentioned that provides services as intermediary and connects bitcoin ATM operators directly with bitcoin friendly banks also providing additional services on the way.
Disclaimer: We are not affiliated with this company, please do your own due diligence before entering in relations. The material is posted and contacts are provided because in our opinion it brings a value for many operators who potentially need banking relationships, but struggle to find it.Continue reading →
One of the main topics to research is regulation and what is needed to be done to properly register such a business. This is very important to do in right way from the beginning if you plan to do it professionally long-term and with potential to grow your bitcoin ATM network in the future.
Disclaimer: Information provided in this article is a general overview of current regulation found in public sources. It should not be taken as a legal advice. It is recommended to contact local lawyer in the area where you plan to operate machines. You can find several contacts at the end of this post.