Crypto ATM

Cryptocurrency ATMs are a popular way to buy and cash out digital assets. With their help, you can bypass the banking system. At the beginning of 2021, the total number of crypto atms worldwide was about 24,068. About 50 new ATM's are installed every day around the world. This indicates that the sector is steadily developing and growing. In this article, we will tell you why cryptocurrency ATMs are popular and how they work.

What is a cryptocurrency machine and what is it for

A cryptobank is a device that makes it possible to buy or cash out digital assets. ATMs exist for both Bitcoin and altcoins. As a rule, one ATM only works with a certain coin. The difference from traditional ATM is that there is no need to use a bank card, instead a cryptocurrency wallet is used, to which assets are either credited or debited.

A cryptocurrency ATM is a pretty convenient way to buy coins for cash. They are popular with users who do not have a permanent access to high-speed Internet.

Sector development

The first cryptocurrency ATM was installed in Canada in 2013. It was installed in one of the popular coffee shops in downtown Vancouver. Since then, the sector has been steadily developing. As the level of trust in digital assets increases, so does demand. According to Coin ATM Radar, in September 2020, the number of cryptomats worldwide exceeded 10,000. Basically, cryptocurrency ATMs are located in the USA, Canada and the UK. Demand for the service in the Latin American, Asian and Australian markets is also growing rapidly. In general, cryptocurrency ATMs are installed in more than 70 countries.

Regulation of Crypto banks

Cryptocurrency ATMs make it possible to buy digital assets for cash, which means that they must be submitted to regulation. Therefore, in countries where cryptocurrency is allowed, ATM owners must comply with money laundering laws. For example, in the United States, they have the same responsibilities as banks with their ATMs. They must have a state license, as well as be registered with the Federal Network for Combating Financial Crimes.

In a number of countries, cryptocurrency ATMs are treated ambiguously. They are not banned, but regulators constantly conduct various checks and if something does not suit them, it may come to the point that the owner will simply be arrested. ATM holders often change jurisdiction. However, even in those countries where cryptocurrency is legal, crypto banks are not so smooth. This is due to the authorities' concern that digital assets can be used by fraudsters to launder money.

In Russia, the first cryptocurrency ATM appeared relatively recently, in 2017, in Ufa. At the moment there are only two firms that are engaged in the development of this sector. This is due to the fact that not everything is clear in the country with the legal field of digital assets. When the legislation is spelled out and the cryptocurrency becomes legal, then crypto banks will begin to develop further.

How Cryptocurrency ATMs Work

Before you start working with this kind of ATM, you should find it. It will not be difficult to do this. There are a number of specialized services that will show the nearest ATM on the map. The most popular among them is Coin ATM Radar. After you find an ATM, you should find out what functions it provides. This should be done due to the fact that not all ATMs are multifunctional. Some of them provide services only for the purchase of an asset, others for the sale and cashing out.

Then everything is as easy as in traditional ATMs:

Select the item “Sell” or “Buy”;

Next, you need to scan the QR code of the wallet. It can be either in the application or printed out in advance. The user can also run it manually, but here you need to be careful. If you make a mistake in at least one character, it will be impossible to cancel the operation;

See the course and commission;

Deposit cash when buying, or cash out the crypt using a QR code;

Confirm the operation and wait for the transaction to finish;

In most cases, crypto banks do not accept bank cards, but work only with cash. This is done to avoid canceling the operation that bank cards provide.

Pros and cons of cryptocurrency ATM

Positive

It is usually possible to buy a crypt in an ATM faster than on an exchange, where it will be necessary to pass verification and provide a full package of documents. Verification for the use of cryptomats, in cases where it is needed, takes only a couple of minutes.

You can buy a digital asset with cash.

This is often the most convenient option to buy or cash out cryptocurrency for people who do not have access to the banking system.

Minuses

The exchange rate and commissions are not as profitable as on cryptocurrency exchanges or exchanges.

Cryptocurrency ATMs are usually located in large cities.

An advanced user who is not afraid to use bank accounts and cards to buy or cash out cryptocurrencies, crypto atms, as a rule, are not particularly needed. First of all, it is because of the commissions and the gap in the course.

Conclusion

As you can understand from this article, using cryptocurrency ATMs is not so difficult and sometimes it is profitable. However, if you do not want to overpay the commission, then it is better to use the usual exchanges or exchangers.

What is the situation with cryptomats in Russia

In Russia, the first cryptomat appeared only in 2017 — in Ufa. According to Coin ATM Radar, 51 devices are currently operating in the country: in Moscow, Voronezh, Yekaterinburg, Kazan, Krasnoyarsk, Novosibirsk, Omsk, Rostov-on-Don, Smolensk, Samara, Tomsk, Chelyabinsk and several other major cities.

Russia also has its own manufacturers of cryptocurrency ATMs: RusBit and BBFpro. Both companies have all the necessary permits and licenses, and have passed regulatory inspections.

The development of this sector in Russia is hindered by legal uncertainty. The country has not yet adopted full-fledged legislation regulating all aspects of the crypto market. When the relevant regulations are prescribed, we believe that the number of cryptomats will increase dramatically. If, of course, the legislation turns out to be loyal.