The Future Of Bitcoin ATMs
Why Bitcoin ATMs Are The Future Of Money
Digital currency kiosks (“Kiosks”), more commonly known as Bitcoin ATMs or BTMs, provide people with the most convenient way to go from cash to Bitcoin or other forms of digital currency. There are over 7,000 Bitcoin ATMs around the world with more being installed every day. Digital currency’s popularity is continuously rising, and Kiosks make this form of currency accessible to everyone.
Coin Cloud’s CEO, Chris McAlary, and VP of Compliance, Raquel Shingleton, shared some of their thoughts about the future of Kiosks.
What is the purpose of the Kiosk?
“The Kiosk provides customers the ability to purchase digital currency with cash, and as our Kiosks allow, it provides the ability to convert digital currency to cash. Coin Cloud’s goal is to make the transaction process simple and safe while providing a world-class experience. It is not an online phenomenon. Bitcoin is being used in people’s day-to-day lives,” McAlary said.
What about scammers?
Unfortunately, there will always be people who try to take advantage of others, whether through a traditional financial system, informal value transfer system, or anything in between.
“Here at Coin Cloud, consumer protection is very important to us,” Shingleton said. “We are always monitoring for suspicious behavior and looking for ways to outsmart the bad actors.
“Since digital currency transactions are final and irreversible, Coin Cloud has controls in place at our Kiosks to protect our customers. Our controls are risk-based and designed to ensure we comply with federal, state, and local laws. Our controls include, but are not limited to, prompting new customers to call into our Customer Support hotline to ensure the customer is conducting the transaction without being coerced by a third party.”
McAlary is proud of the work that Customer Support and Compliance does. “The amount of fraud prevented is approaching seven figures,” McAlary said. “Our Kiosks warn that the transaction is final and to beware of scams throughout the transaction process.
“Before completing the transaction at our Kiosk, customers are cautioned that if this transaction was prompted by the IRS or Social Security Administration, they might be the target of a scam. To continue the transaction, the customer must select the button that no one sent them to our Kiosk.”
Does criminal activity occur at these Kiosks?
“It is unfortunately the misconception that these Kiosks are a criminal activity hub,” Shingleton said. “Our Compliance Program allows us to combat illegal activity and terrorist financing by putting policies and procedures in place to deter bad actors from using our Kiosks. We have transaction limits where the customer must provide identification as described in our Know Your Customer Policy.”
“Customers can only do so much before being prompted to answer further questions. We want nothing to do with money laundering or illicit activity at our machines,” McAlary said.
Security around personal information:
In the digital age, concern surrounding personal information is understandable. At Coin Cloud, we value our customers’ identifying and financial privacy. We do not sell or distribute our customer’s information. We comply with federal, state, and local laws by retaining the information as required for the required duration.
McAlary’s final thoughts:
“The numbers and growth of the industry speaks for itself. Digital currency kiosks are here to stay. Six years ago, one could find one Kiosk, and now, there are over 7,000 Kiosks. This increase shows the value these Kiosks are adding to consumer’s lives based on just the usage and growth of the industry.”