Bitcoin ATM: how to use it and where to find it

The Bitcoin ATM allows users to buy and sell bitcoins for cash. Currency exchange at such a terminal can be more expensive than online transactions.

In all ATMs, the buying process is the same:

1. The verification stage.
2. Getting a bitcoin address to make a deposit (can be generated and printed out/emailed).
3. Putting cash into an ATM.
4. Confirming the transaction.

Bitcoin ATMs are considered money transmission devices. According to the law, they fall under the definition of payment systems. Different countries have their own requirements. The most common ones are: «Know Your Customer» (KYC) and «Anti-Money Laundering».

Registering a company for remittance rights is very expensive. That's why ATM vendors raise fees. Fees vary in the range of 5%, and quotes are taken from major exchanges online.

How to find a bitcoin ATM near you

You can use Coin ATM Radar to find an ATM. It shows points with ATMs all over the world map. With the service you can:

• View the map with the locations of the terminals.
• Locate the location of the crypto ATMs nearest to you.
• Get information about this terminal (fees, limits, possible transactions).
• Path from your location to the ATM.

Buy or sell bitcoin via ATM

Buying/selling bitcoins through terminals can be confusing as they come in different types:

• Genesis1 Bitcoin ATM
• Satoshi1 Bitcoin ATM
• Satoshi2 Bitcoin ATM
• Lamassu Bitcoin ATM
• Lamassu with Santo Tirso
• BATM2 Bitcoin ATM
• BATM3 Bitcoin ATM
• BitAccess Bitcoin ATM
• BitXatm Bitcoin machine
• Robocoin kiosk
• Skyhook bitcoin machine

What about fraud?

You don't have to worry that the crypto machine will “cheat” you and won't send coins to your account. BTMs are maintained by operators and changes in terminal design or software will be detected immediately. First try a small transaction. Then you can transfer funds as needed.

How Bitcoin ATMs work

Let's look at the process using the Genesis1 Bitcoin ATM as an example:

1. Click «Buy Bitcoin»
2. Select a coin.
3. Click «Scan QR»
4. Scan QR Wallet.
5. Put cash into the receipt window.
6. Press «Finish».
7. Collect the printed receipt.

Buy Bitcoins at Lamassu Bitcoin ATM

1. Scan your bitcoin wallet
2. Insert cash
3. Click «Send Bitcoins

Buy Bitcoins through BitAccess Bitcoin ATMs

1. Click Start
2. Enter your phone number and press «Proceed»
3. Enter the confirmation code sent to your mobile number.
4. Scan the QR code of the BTC address.
5. Deposit money and proceed.
6. Coins will be sent to your BTC address.

Legal challenges

As the demand for cryptocurrency ATM services increases, authorities around the world are starting to pay more attention to bitcoin terminal makers. Lamassu has changed its registration due to continued difficulties with banking services. The head of the company Zag Harvey said that 15 banks rejected his firm because Lamassu creates bitcoin terminals. And the company only manufactures the hardware, doing technology maintenance, not trading or storing cryptocurrencies. The company's only business is trading or storing cryptocurrencies.

In October 2018, Indian police arrested the co-founder of local exchange Unocoin over the opening of a crypto ATM in the city of Bangalore. Despite no violations, Sattvik Vishwanath reported that police confiscated the crypto machine because of an unclear situation with the need for a license.

In October, police arrested Unocoin's co-founder in Bangalore.

Such situations and regulatory complexities are exacerbated by questions about the classification of cryptocurrencies as certain types of assets. Jurisdictions around the world have not yet definitively legalized the status of digital assets and their components to the crypto industry. The regulation of the cryptocurrency market puts the legitimacy of bitcoin machines at risk.

Frequently, malls with terminals have received numerous warnings from supervisory agencies that they are in violation of the law. However, there is no official documentation that these devices are illegal. Legislative and supervisory authorities, at the sight of the word & lquo;bitcoin» start to get scared and look for violations, which would fit into articles on money laundering and fraud.

The situation with cryptocurrency ATMs in Russia

The first crypto-machine in Russia was installed four years after the appearance of such equipment in the world. This happened in January 2017 in Ufa. Earlier, in 2016, there were attempts to organize a bitcoin exchange by a group of activists from the LocalBitcoin platform. Transactions were carried out exclusively privately, with a queue lined up at the exchanger. In 2017, «stationary exchanger» closed due to the unprofitability of the idea.

According to the Coin ATM Radar website, there are now 53 crypto ATMs operating in Russia in Moscow, Rostov-on-Don, Omsk, Krasnoyarsk, Voronezh, Yekaterinburg and other cities.

There are local manufacturers of cryptocurrencies in Russia that assemble their own equipment for digital assets. One of the first companies that engaged in such devices in Russia was «Malavita» with the trade name RusBit.

According to the documents, the firm, based in Bashkiria, is engaged in the development of authoring software of Russian production on cryptocurrency exchange for cryptomats RusBit. They also carry out the implementation, delivery and installation of their cryptomats in the regions of the Russian Federation.

The company is obliged to provide free advice and reliable information to the population of the Russian Federation about cryptocurrencies, cryptocurrency exchanges, fraudulent schemes in the exchange of cryptocurrencies, types of mining. In the fall of 2017, at the request of the Prosecutor's Office, an on-site desk audit was conducted by the Federal Tax Service and the Department for Combating Economic Crimes of the company &lquo;Malavita». As a result of the inspection no violations in the work of the company were found. One terminal costs from 135,000 to 175,000 rubles. The commission fee for the transaction is 4−6%.

Another producer and supplier of cryptocurrencies is BBFpro. The company has been in operation since 2017 and is based in Krasnodar. The firm offers two machines with software already built in, costing 160,000 and 280,000 rubles.

BBBFpro promises to connect the terminal to any cryptocurrency exchange, the possibility of connecting other software, free system updates, 24-hour support. According to BBFpro, there are about 450 transactions on a single device every day. In general, the global trend of cryptocurrencies is growing.

In general, the global trend of increased demand for cryptocurrencies is supported in Russia, as local manufacturers of equipment for digital assets have emerged. They provide a full work cycle from equipment assembly to its implementation. In addition, the documentation of projects does not arouse suspicion of law enforcement agencies. It is likely that the spread of crypto-terminals will help make digital assets a more accessible resource for even more users.

blockchain24.pro