In the below video, you can hear an interview with Zach Harvey, the CEO of Lamassu, one of the biggest Bitcoin ATM Manufacturers on the market. He shared his thoughts about the cryptomarket and the way it is heading, as well as his insight into the Bitcoin ATM business, Specifically, what differs it from the exchanges and what is the worldwide coverage.
Interestingly, before becoming a successful crypto entrepreneur, Harvey owned a guitar store with his brother in Israel. As they were starting to adopt the libertarian philosophy at some point, and developing ideas about a decentralized marketplace, the concept of decentralized currency emerged naturally in their minds and was just an obvious next step. It took them some time to gain trust in Bitcoin, but after some persuasion from their libertarian friends, in 2011 they started offering to sell guitar gear for Bitcoin at their store. Of course, they were the first store in Israel to do so, and sure enough, nobody ever paid them in Bitcoin for anything at that time.
In this video, MSCS media hosted Paul Leix. He is a partner in a Bitcoin ATM Operator called Digital Ventures Group. He talks about a lot of different crypto-related stuff, including the Bitcoin ATMs, the Operating business, compliance, predictions…etc.
Paul’s beginning was somehow interesting. He started trading Bitcoin back in 2013. after his then friend, and later partner persuaded him. For some time they traded at LocalBitcoins when they met an owner of Red Leaf Bitcoin ATM company and got an idea to go that path themselves. Have in mind that it was back in the day when Bitcoin ATMs were very rare. So, they went to the guy they know who owns a liquor store and installed a machine there on their own. The thing is that at the time they didn’t know how to get the compliance. The concept of crypto was new back then and they needed someone to do it for them. The first guy wrote a 2 pages long document and charged 900 bucks for it. Later on, they found the right guy who wrote them a complete book of policies and procedures which was the real deal. Of course, it also cost them a lot more, $15.000 to be specific.
In the following video, you can hear Corey from TheCoinBros talking about everything you need to know if you want to start your own Bitcoin ATM business. He discusses AML & KYC policies, creating a legal team, which machines to use, banking, ideal locations, and what it takes to sell store owners on adding a machine to their shop.
TheCoinBros started in 2019 after Corey parted ways with his partner. He wanted to do things his way so he bought thecoinbros.com domain and registered the LLC in 2017 and sat on it for 2 years while he meticulously planned his strategy. At the very beginning in 2019 they had only 4 machines but quickly rose to 15 within a couple of months. Now they have close to 60 machines with plans to constantly expand. As Corey says, the Bitcoin ATM business is very unique, and it is one thing to have 2 machines but it’s a completely different animal when you start scaling up. So he will share some advice on how to start.
In the second video of the Crypto Crow Bitcoin ATM Business series, you will find out more about banking, AML/KYC, Compliance, and FinCEN. Jason will also reveal some shady practices performed by Bitcoin ATM Operators which will trigger a discussion about business ethics.
After going through all of the options that we mentioned in the previous post, from General Bytes to Alibaba, he decided to buy the machines at BitAccess. The thing he liked the most is that they were very helpful from the start all the way up to the shipping of the machines.
In the United States, the IRS views cryptocurrency as a property (for businesses) . This means all cryptocurrency related transactions must be tracked and the capital gain/loss accounted for. To ensure compliance and to prepare for any potential audits, transaction records should be kept for 7 years as recommended by the IRS, this means safeguarding 7 years worth of cryptocurrency transaction records for operators .
Below are some common taxable events operators may encounter:
Bitcoin ATMs installations exceeded 10’000 locations across the globe. It took industry roughly 7 years to reach this point since the first permanent bitcoin ATM installation in the end of 2013 (there is still a bitcoin ATM at this location in Vancouver at Waves Coffee House). Looking back at traditional bank ATMs, it took banks 9 years to install 10’000 ATMs, so the pace of bitcoin ATM installations is quicker than for bank ATMs back in the 70-s.
Interesting fact: After the first 3.5 years there were 1000 active bitcoin ATMs in operation, over the next 3.5 years this figure has increased by 9000 ATMs more.
It is a large milestone and achievement for all involved companies and people. We would like to congratulate all members of the community, entrepreneurs involved in operation of ATMs and supply of hardware and software, companies that provide compliance and other complimentary services helping to grow the business. We use this milestone as a chance to look back and check how running bitcoin ATMs became a professional business and evolved over these years.
In this video, you will see the first part (out of two) of the interview with Cory from CoinBros. In this part, he will talk about the CoinBros as a company and explain how Bitcoin ATMs work.
After telling a story on how he started to gain interest in Bitcoin while he was a paramedic and finally started a Bitcoin ATM business in 2017, Cory was asked to explain how is cryptocurrency stored in the machine.
He explains that you can link the ATM directly to the exchange via API or you can use the cold storage wallet. Linking directly to an exchange is less risky because you buy or sell crypto live and that way you cannot become a victim of volatility. On the other hand, by storing the crypto in the wallet you can lose a lot of money if the price keeps going down like in 2018, or you can earn much more in an opposite scenario.
In this episode of the “Nick and Jimmy” show, you will hear Maria and Michael from Instacoin talking about how they got into the Crypto ATM business and how they got to operating more than 100 Bitcoin ATMs all over Canada.
The first Michael was asked was if the cryptocurrency will take over the fiat currency. In his opinion that is the actual goal of cryptocurrency, adding that it is currently gaining more and more popularity even though it is fairly young (only 10 years). He thinks that crypto presents a great alternative to a fiat currency because it’s much faster to buy stuff online or if you want to do remittances it’s a lot cheaper. The most important thing is that it is not centralized, which means that there is no middleman who’s taking astronomic fees.
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.