How State Regulatory Requirements Prohibit Operations of Bitcoin ATMs
So, I have been interested in operating a Bitcoin ATM.
But after some research, I realize that it is not easy for a small startup to just purchase a Bitcoin ATM and place it in somewhere.
The reason for this is because of the State Regulatory Requirements.
For example, in my state, you will need a Money Transmission Service license if the business "includes the selling or issuing of payment instruments or stored value devices or receiving money or monetary value for transmission."
In order to apply for this license, you have to pay the state $600 investigation fee so they can investigate to see if your business is fit to operate a money transmission service. Then, if they decide your business is fit, you have to pay the state $3000 base license fee plus $50 for each location!
Ok, so, the total licensing cost is $3650 its a pretty steep price just for a license but it's still doable... But there's more!
- Net worth of $100,000 + $25,000 for each location and delegate, not amounting to more than $1,000,000
- $500,000 bond, + $10,000 bond for each additional location, not amounting to more than $1,500,000.
Theres is no way I can come up with $100,000 just to start a Bitcoin ATM!! Plus a $500,000 bond?? Just to run 1 measly Bitcoin ATM? Not worth it.
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