Wednesday, April 24, 2019

Dubai’s First Bitcoin ATM Removed After Two Days

BTCNN earlier reported the launching of the first Bitcoin ATM in Dubai, which was good news to the global cryptocurrency community. However, after two days from launch, the BATM has been removed.

BATM Removed Over AML/KYC Obligations

The first Bitcoin ATM (BATM) in Dubai which was situated in the Dubai hotel and wellness center, Rixos Premium, Dubai JBR has already been removed. The BATM was reported to allow users to purchase Bitcoin with cash anonymously. This previously seems like a passage for those that want to venture into the world of digital currency without having to undergo KYC or even present an ID, but this has been botched with the BATM removal.

The stance of Amhora towards KYC seems to have prompted the machine’s removal. Amhora, the firm behind the Bitcoin ATM noted in a tweet that “after a brief run-in with the law enforcement yesterday, we have temporarily put-off the ATM from its location. Working closely with the relevant authorities to reinstate it after we fulfill all AML/KYC obligations.”

As per the tweet, the first Bitcoin ATM in Dubai should be re-installed as soon as Amhora resolves its legal obligation with the authorities.

BATM with KYC Option

Amhora claimed it is fully licensed by the Department of Economic Development. This is contentious because the Bitcoin ATM would not have been removed if it was fully licensed. However, before the BATM could be re-installed, a full license must be obtained.

Also, like most Lamassu ATMs, the Bitcoin ATM will be updated with KYC options and charge users a five percent commission on the total purchases. This is considered cheap in comparison to 7.5 percent charged by most BATMs.

Further, the notion of Anhad Dhingra, CEO of Amhora is that “this kiosk, you just insert cash and you get bitcoins instantly,” is set to be overturned when the BATM returns. This is because the addition of the KYC option will eliminate its enthusiastic description of obtaining Bitcoin by just inserting cash.

Meanwhile, there has been a surge in the number of Bitcoin ATMs globally. As at January 2019, there were over 4,000 Bitcoin ATMs. The U.S. has the highest number of cryptocurrency ATMs, with 2,493 or 55.9 percent of the world’s BATMs according to Coinatmradar.com.

The surge in the number of Bitcoin ATMs globally took place during the winter market. As more countries catch the cryptocurrency fever, it’s expected that Bitcoin ATM installations will be on the rise.

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