Bitcoin ATMs are becoming increasingly popular around the world, and are seen as extravagant ways for users to get their hands on BTC. Dubai – the world famous land of luxury – got its first Bitcoin ATM over the weekend, but law enforcement was quick to shut down and remove it due to the ATM’s rather loose KYC and AML procedures. It was installed in the Rixos Premium Hotel, but the parent company – Amhora – has come out and said that the ATM will be re-installed in a matter of weeks once it irons out the KYC and AML flaws in the system.
Fully Licensed ATM
The Bitcoin ATM was installed in the hotel so guests could buy Bitcoin, as well as convert their BTC into Dirhams to pay for access to hotel features. Amhora has claimed that the ATM was fully licensed by the Department of Economic Development, and that it was given the green light to go ahead and install the ATM.
Poor KYC Getting in the Way
Individuals didn’t have to undergo any KYC or AML checks in order to use the Bitcoin ATM, meaning that it could easily be used to launder illegally obtained money via the crypto world. A number of crypto wallets and exchanges have decided to increase trade limits before KYC is required, but as far as it stands, all Bitcoin ATMs should require KYC and AML checks no matter the size of the transaction. My Ether Wallet recently increased its pre-KYC limit to $5,000 – a move that was welcomed in the crypto community.
Bitcoin ATMs Becoming Popular
All around the globe, more and more Bitcoin ATMs are popping up. The total number globally recently surpassed 4,000, with the 5,000 mark on the horizon. Recently the Union Bank of the Philippines launched two Bitcoin ATMs in the lobby of its main branch, highlighting the increased demand for safe and secure crypto access in the developing world. The two ATMs were initially launched as a test, but became incredibly popular. As it stands, the bank is keeping the two ATMs as permanent features and is looking into placing more throughout its branch network.
The Bitcoin ATM is due to be re-installed within a couple of weeks, giving Dubai its first Bitcoin ATM back. With vending machines that dispense gold bars, Bitcoin ATMs – with the proper KYC and AML checks – would be a welcome addition to the billionaires paradise.