Bitcoin ATMs are special tools that permit the purchase of Bitcoin with physical money anonymously. Like regular ATMs, they can be found in a shop, in a restaurant, and everywhere, basically, in almost every country. They create a possibility for customers to make operations with Bitcoin and other types of cryptocurrency.
This brief review will discuss the various ATMs nearby, the benefits and drawbacks of such ATMs, the way how those crypto tools operate, and also a guide on how to find a Bitcoin ATM nearby your location.
Bitcoin ATM Brief Report
Bitcoin ATMs are machinery tools that accept cash and convert the money into Bitcoins. Some ATMs also can buy Bitcoin from you and give you cash in return.
As the process itself is very anonymous, the vast majority of British ATMs set serious restrictions for the purchase of coins. Some models even demand a Know Your Customer process.
Some of the most popular ATM companies are General Bytes, Genesis Coins, and Lamassu.
To cut a long story short, that’s all one has to know about Bitcoin ATMs. If you would love to learn more about the topic and some other relevant details and data, read the full article below. We will discuss such important topics as what is a Bitcoin ATM, how to utilize it, the best BTC ATM, the manufacturers of Bitcoin ATM, their locations, and how to operate your own BTC ATM, and some concluding thoughts.
Bitcoin ATM in Short
A BTC ATM is a physical machine that resembles a Bitcoin crypto exchange. While utilizing it, one may purchase Bitcoins with real cash. The first machine in the world of such kind was opened in the Mid Autumn of 2013 in Waves Coffee Shop in Vancouver in Canada. The device comprises a scanner, a cash dispenser, and a computer connected to the Internet to manage the transactions.
What is the Working Mechanism of the ATMs?
The key point that Bitcoins are transferred to the Bitcoin wallet of the purchaser by scanning QR code on the mobile device or paper waller. All the customers have to do is to buy Bitcoins or sell Bitcoins in the ATM. The Bitcoin money can also be transferred straight to a paper wallet generated and printed by the ATM at the moment of the deal.
The price of the offer is determined by the Bitcoin exchange rate, of course. The ATM is connected to the Internet and gets the data about the exchange rate from here. The customers should also acknowledge that the ATM charges an additional percentage fee for the service and includes it in the price.
Do Bitcoin ATMs Dispense Cash?
The mechanism of ATMs differs from machine to machine. Most machines can deal only with the purchase of Bitcoin, but some allow to sell Bitcoins. Nonetheless, some models can do both: give Bitcoin for cash and give cash in exchange for BTC.
What is the Fee of Bitcoin ATM?
The regular fee is around 8.93%. But one has to acknowledge that this is a very average and very approximate fee, and it can vary drastically across different Bitcoin machines. So, before buying Bitcoins in ATMs, one should read the instruction on the machine really carefully.
How Do I Use a Bitcoin ATM?
As already mentioned, every machine is different, but the instructions for purchase are merely the same:
- Tap the tab called ‘Buy Bitcoin’;
- Scan the QR code of the Bitcoin address with the scanner of the ATM;
- Perhaps at this step, one would have to verify the identification;
- Fill out the number of Bitcoin you want to buy and put the cash into the ATM;
- After the ATM does the transaction, make sure to check the BTC wallet authorization.
Speaking about the case when one wants to get cash for Bitcoins in an ATM (when one wants to sell Bitcoins), it is a much more distinct process. It depends on the model of the machine. Anyway, the machines are pretty user-friendly, so one will have to follow the guidelines on the screen.
Best Bitcoin ATM Operators
In this section, we will briefly introduce the best Bitcoin ATMs in the cryptocurrency industry.
General Bytes Bitcoin Machines
It is a business organization that originated in the Czech Republic. General Bytes is the hugest Bitcoin, Blockchain, and Cryptocurrency ATM business company in the whole world. It is considered to be a premier provider. The organization produced and sold more than five thousand machines in more than 60 countries worldwide. The notable thing about their Bitcoin ATMs is that they support more than 120 various fiat currencies!
The company created three main models of ATMs:
This machine was created for reliable mounting on the wall or an additional stand. It only accepts the purchase of cryptocurrencies. The crypto kiosk as well as an embedded finger scanner for such things as AML and KYC. The price of this machine is 3249 dollars.
This machine has a 23-inch Full HD display. The ATM is fully mounted. This machine can be used for bor ‘buy and sell’ of Bitcoins and other cryptocurrencies. The price of this machine is nearly 5999 dollars.
This model is the newest and most modern one. It has the same characteristics as BATMTHREE, but this latest model is presented in a fully new design. The model also is capable of the ‘buy and sell’ functions of Bitcoin and other cryptocurrencies. The crypto machine has another advantage, as it also has the option of individual configuration. It costs nearly 6499 dollars.
Genesis Coin Bitcoin Transfer Modes
The company is headquartered in San Diego, in the country of United States. The business company is considered to be one of the most popular Bitcoin ATM originators. Some people even claim that Genesis is one of the best autonomous vending solutions. The business company has three diverse ATMs.
It is a 2-way BTM using which one can sell Bitcoin and purchase Bitcoin. Genesis 1 has many additional functionalities, for example, a bill validator, barcode scanner, EMV card reader, fingerprint reader, and a thermal printer. The price of this unique Bitcoin machine is 14500 dollars.
The Model Satoshi1 has 2 submodels: the ‘only buy’ model and the ‘buy and sell’ model. The apparatus is way smaller than Genesis1, having a screen of 21 inches and a high-level definition camera. It also has a fingerprint scanner. This machine is worth 7380 dollars for a 1-way model and 9480 dollars for a 2-way model.
This model is the most modern one and is the smallest one of all Genesis Coins Machines. The model is designed only for the purchase of cryptocurrencies. It has the same functionality as Satoshi1, but it is much tinier and must be installed into the wall due to its size. The price for this machine is approximately 4500 dollars.
Lamassu Bitcoin Transfer Modes
Switzerland also took part in the Bitcoin Machine development. It is the oldest creator of the BTM machines, starting from 2013. Lamassu models are open-source, and they accept Bitcoin and other cryptocurrencies, for example, Zcash, Ethereum, Bitcoin Cash, Litecoin, and Dash. One may add extra coins manually if required. Lamassu produced four various models of BTMs.
Gaia is a model that should be mounted on a wall or table. Its weight is only 25 kilograms. Basically, it can be put in the flight case. Gaia is a 1-way model BTC ATM, and its price is 3700 euros.
Sintra is made of 2.5 mm layers of steel, and it has a full glass user interface. Moreover, the model has a custom PC board with a substitute battery, 3G connection, tamper sensors, and front door control. The machine comes in both the ‘buy and sell’ and ‘only buy’ model. The price for the 1-way model is around 5000 euros, and the 2-way model is worth 6700 euros.
Sintra Forte is a very similar model to Sintra, but it is twenty percent larger than Sintra. Not to mention, it has a vault made of 6 mm hardened steel with a note validator that is protected by an electronic lock. The vault also has a note dispenser and computer board, and it is another advantage of this crypto ATM. The 1-way ATM costs 7100 euros, and the 2-way is worth 8700 euros.
A Complete List of all ATM Creators
Overall, there are just over thirty BTM creators worldwide. We provide you with a list of them: General Bytes, Genesis Coin, Lamassu, BitAccess, Coinsource, Covault, Order Bob ATM, Digital Mint, Shitcoins Club, Coinme, Sumo ATM, Bytefederal, zzBit, wBTCb, RusBit, BTC facil, BBFPro, Bcash Greece Inc, Intellogate, BitTeller, Bitstop, ChainBytes, Bitnovo, Vault Logic, Trovemat, CoinLogiq, Open Bitcoin ATM, Criptomat, Coin Capital, CryptoMat, CryptoMatic ATM, CryptoGo, BitOcean, BitVending.
What are the Location Spots of BTMs?
By clicking on this link, one will be able to see a full Bitcoin ATM map worldwide. It is a service made by CoinATMRadar, and it shows their location. A Coin ATM Radar is a Bitcoin ATM Map, so one will have to find their current location and find the closest BTM using their smartphone.
If you are a resident of the United States, you can utilize one of the Coinflip ATMs.
The Bitcoin ATM Map provides one with the ability to look for the Altcoin ATMs if one wants to ‘buy and sell’ other cryptocurrencies and blockchain assets. Of course, each ATM charges a certain commission from trading. The number differs from one machine to another. So you should know what amount of fee you are going to pay.
Rules of Operation of a BTM in the United States
This section will discuss the key four postulates around which one may make the proper strategy before launching a Bitcoin ATM.
Check the Requirements for Money Transmitters in Operation
It is very crucial to acknowledge that in some states of the US, the rules for BTM regulations and Bitcoin operations are way less harsh. This implies the difference between a comprehensive state licensure process and an exception under state funds transmitter law.
The distinctions are huge and are constantly evolving. The US States remain to improve the application of existing and outdated legislation on the transfer of money. In the autumn of 2020, roughly 49 States have similar regulations for cryptocurrency companies that host Bitcoin organizations; nonetheless, it is essential to be acknowledged about the rules and regulations in your state.
Enroll the Market as an MSB With FinCEN
It might be surprising to you that enrolling into business with FinCEN, the main national anti-money laundering observable office, might be the easiest task to complete. This is actually a simple ‘check-the-box; moreover, at the national level, unlike the permit-based state licensing process, companies simply register with FinCEN through an online portal.
The whole registration thing lasts for only one hour! Although it is straightforward to register, it brings you much responsibility. When you sign the documents, so to say, one agrees to be governed by FinCEN. This means that one needs to meet special necessities for the satisfaction of regulators.
This involves, inter alia, state-level registration, assuming there is any possibility, the improvement and implementation of an anti-money laundering program, the collection of certain transaction data, and the report of questionable activity and transactions over ten thousand dollars.
Execute an AML Program
FinCEN rules and laws demand the execution of a written AML program. An efficient Anti-Money Laundering program is meant to block one’s Bitcoin ATM from being utilized to contribute to money laundering actions and practices. Each of such programs should be written out and should include the following points:
- Include policies, methods, and internal controls logically created to ensure compliance with the Bank Secrecy Act;
- Assign a compliance officer responsible for everyday acquiescence with the BSA and AML program;
- Ensure that relevant personnel are continuously trained in a needed manner concerning their responsibilities under the AML program;
- Implement an objective review or summary of your AML program at least every year.
Check Your AML Program
One could begin with performing some selective ‘buy and sell’ actions from your Bitcoin wallet via the terminals. One should also check the thresholds to make sure that your KYC requirements are working. Some extra suspicious, unusual activities should also be somehow tested and identified with a ‘red flag.’
Afterward, make sure that person and transaction data is received and recorded properly. One should keep track of their findings. Do not forget to document the following changes in the AML program after testing and checking the program.
BTMs are handy machines that provide one with the ability to purchase and sell Bitcoins very safe due to anonymity. The process itself is rapid. The user interface is pretty intuitive, so no math degree is required for the usage of this machine. Most of the Bitcoin ATMs have the same working mechanism; nonetheless, the fees might be varied across different models of BTMs, so one should make sure to check the fees in advance.
The cryptocurrency machines are considered to be safe as they do not keep the private keys of the person and customer data.
Some of the Bitcoin ATMs have live support, but my advice to you is to film your whole purchase process so in case something goes wrong in the transaction, you would have proof of your fair deal.
If you have utilized such a machine as BTM, make sure to leave some comments about your personal experience!
Do Bitcoin ATMs Give Cash?
It depends on the model of the Bitcoin ATM. Some of the models of machines allow only the purchase of Bitcoin, while some offer one to ‘buy and sell cryptocurrencies’ where cash is distributed. The machines are called a 1-way model and 2-way model, respectively. Actually, the 2-way machine is also named a Bi-Directional Functionality model.
What is the Point of a Bitcoin ATM?
Bitcoin ATM is very similar to traditional ATMs, as they are both said to increase the revenue of the business by manipulating the money. Traditional ATMs allow one to manipulate the cash with a credit card and fiat currencies, while Bitcoin ATMs provide one with the ability to buy Bitcoin and sell Bitcoin (or some other crypto coins) and any other blockchain asset.
Moreover, the regular ATMs usually connect to one’s Bank Account, while Bitcoin ATMs do not connect to the Bank account. Instead, they operate with cash and a chosen cryptocurrency. Basically, all types of machines operate in a similar fashion. But the traditional machines are the things of the past, and BTMs are things of the future!
Another thing to mention is the Bitcoin ATM Map, which is a special tool that provides one with the ability to find a BTM. One will need to identify their current location and find the closest BTM utilizing their smartphone.
Is Bitcoin ATMs Legal?
Yes, they are indeed legal in case they are operated under FinCEN and follow the state and federal regulations.
Does Bitcoin ATM Accept Debit Cards?
Most of the BTMs do not permit the use of credit or debit cards. So, customers have to go and take cash and then go to the Bitcoin kiosk that only accepts cash. It is made for the security of debit and credit cards.