When ATMs turn banknotes into bitcoin

In the Netherlands, ATMs accept large sums of cash to credit the customers' virtual wallet with bitcoins. Those who sell can get stinging euros.

The proliferation of bitcoin distributors in the Netherlands is a serious concern for the kingdom's authorities. Becoming commonplace, these devices of a new kind allow to buy and sell this virtual currency in conditions subject to caution.

The machine indeed accepts "without discussing" the cash payments of several thousand euros made by individuals. In exchange, she immediately transfers these sums converted into the cryptocurrency on the customers' virtual wallet. Conversely, a distributor can also provide hard cash for a customer who wants to sell his bitcoins. So many transactions that take place in near anonymity.

About fifteen such devices are in service in the Netherlands. Most are operated by Bitcoins4me, which also has an online sales site.

Door open to all excesses

Money laundering in a few clicks, tax evasion facilitated, these distributors are the door open to all excesses. "These devices provide a means for criminals, including drug traffickers who, in possession of large sums of money, seek some way to obtain virtual money," said Anita Van Dis, Attorney General in charge of business money laundering.

In the face of these dubious practices, the financial authorities appear to be poor. Since bitcoin is a virtual currency, none of the supervisory and regulatory bodies, the central bank or financial market authorities (AFM), currently have the necessary legal texts to clean up the sector.

The facilities granted by these bitcoin distributors also have a certain cost for the customer. The average commission charged by the four Dutch internet sites for bitcoins is around 0.25% of the transaction amount. At the distributor, it covers 6% of the sum, 24 times more!