News

Bitcoin ATM runs up against regulatory roadblocks

May 23, 2013

In March, the U.S. Treasury, through its Financial Crimes Enforcement Network, issued guidance clarifying that virtual currency exchanges and administrators are money services businesses and, as such, are subject to U.S. government regulations — just like ATMs. Which leaves would-be Bitcoin ATM operators in a bit of a fix.

An article by Wired said that Robocoin, BitcoinATM and Lamassu all have developed machines that turn cash into bitcoins or vice versa or both. But none of them wants to "touch the stove" by setting up a working machine on the street and waiting for a regulatory response. 

Both Robocoin, a cash-bitcoin/bitcoin-cash concept, and Lamassu, a company with a cash-to-bitcoin machine, are looking to find buyers who don't mind tangling with regulators.

Meanwhile BitcoinATM, a company that make a big noise during the financial crisis in Cyprus, has dumped its previous leadership, ditched the idea of a dedicated bitcoin machine and, instead, focused on developing software that would allow a traditional ATM to transact in bitcoins.

The company plans to take its concept live within six months in the least regulation-minded U.S. state. Time will tell how that goes — for a company that once vowed to have 200 BitcoinATM machines installed by the end of 2012.

Read more about multi-function ATMs.