The Akron, Ohio Bitcoin ATM Has Arrived After A Lot of Legal Paperwork

It seems there is another wave of Bitcoin ATMs being installed all over the world, even though most of the efforts are still focusing on the United States. Akron, Ohio recently got their first Bitcoin ATM, and it is another two-way device letting users buy and sell Bitcoin for cash.

Owning And Running A Bitcoin ATM Is Not Easy

TheMerkle_Bitcoin ATM Akron

To most outsiders, it may seem rather simple to get Bitcoin ATMs up and running, as long as there enough funds to purchase the device. Store owners may have a slightly easier time in this regard, as they can host the device at their own premises. Other operators, however, will have to look for a location to install the equipment, and pay a portion of earnings to the site owner.

But that is not the hardest part of setting up a Bitcoin ATM these days, and the Akron, Ohio one is a perfect example of that. It took the team several months to create an AML program which complies with federal and state regulations. Keeping in mind how every US state has their own set of requirements, navigating these legal waters is not an easy task.

In fact, it took the owners several thousands of dollars in legal fees to set everything up correctly. Add this amount on top of the need to either purchase or manufacture a Bitcoin ATM, and things get very expensive rather quickly. Moreover, there is no guarantee this money will be earned back at any point, despite growing interest in Bitcoin all over the world.

It is kind of interesting to see how the fee structure for this Bitcoin ATM works as well. Most machines charge the same fee for both buying and selling, but this two-way Bitcoin ATM does things a bit differently. There is a 7% fee when buying Bitcoin – which is on par with the average – while there is only a 1% fee when converting Bitcoin to cash.

Last but not least, these types of machines will only be attractive depending on how much identity verification they require. The Akron, Ohio Bitcoin ATM requires a phone number for transactions user US$1,500 per day, whereas larger amounts need an ID scan as well. It seems the daily limit per user is US$3,000 for the time being.

Source: Reddit

Images credit 1,2

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One Response

  1. BTC-baghodler May 1, 2016

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