Ah yes, Bitcoin ATMs. The easiest way to buy your Bitcoins anonymously-- Oh, by the way, I forgot to mention that It's not easy or anonymous anymore. I'm going to switch things up today and talk about a personal experience for once. When I first invested in cryptos I used Coinbase, and I purchased ETH and LTC. My account was locked the day after, but luckily I was able to get my funds back (after two weeks). Just the other day I saw a BTC price drop and decided to go in, so I went to a shell gas station and bought some BTC within two minutes, easy. Two days later, I go to purchase some Bitcoin at the same ATM and it refused to recognize my account and made me scan my ID. I decided I didn't care, so I scanned it. After that, I was greeted with a screen telling me that It would take hours to verify my account. The machine literally advertises buying bitcoins within minutes. What happened to that? This was a BitStop ATM, so I decided to test my luck at the liquor store twenty minutes away, where I was greeted with a similar verification process I was not prepared for. Either way, I was able to trick it by entering my information as a returning customer before the verification processed, so good for me. The next morning I woke up to two texts saying that both of the machines couldn't read my ID. How great. But the real question is WHY. How come the only way to buy bitcoin anonymously that doesn't involve meeting a shady dude at a Chinese restaurant is gone?? That's what I'm covering today.
Remember back in 2013 when Bitcoin was placed on capital gains taxes as property? Yeah, me neither. But that's not the point. The Government now recognizes Bitcoin officially as a virtual currency, and the Secretary of Treasury later declared Bitcoin as a "primary money-laundering concern". This doesn't seem like a big deal, but that means that all companies that sell or purchase bitcoin are required to follow AML and KYC regulations. These regulations require that companies are tracking customers based on their personal information and location of purchases, and they also require companies to regularly submit information on their customers. I will be posting a link at the bottom so you can research these regulations further.
Well, it's no surprise that Jeff Sessions hates Bitcoin, and basically everything else he doesn't understand. With more tensions building in the government, these machines are finally releasing software updates that require customers to fully present their information so that they can comply with the AML regulations (which are likely being enforced already). The problem here is that it is now no longer possible for minors to buy Bitcoin at these ATMs because registration requires a contract, and a valid contract can only be signed legally by someone older than the age of 18 in the US. This leaves localbitcoins as the only method for minors to purchase, and sadly this is the method that is most likely to result in issues for newcomers to the crypto world.\
Basically, you're screwed. There's really no reason to use ATMs anymore because they are tracking and submitting your usage, and you have to find someone yourself if you want to buy coins anonymously. These ATMs served a great purpose while they could, but sadly the government has ruined another great part of America. Thanks, Jeff.
Check Out The BSA Regulations: https://www.occ.treas.gov/topics/compliance-bsa/bsa/bsa-regulations/index-bsa-regulations.html
