Friday, February 1, 2019
Over 50 Bitcoin ATMs Operate Legally in Russia, Study Finds
At least 51 cryptocurrency ATMs operate in compliance with the current regulations in Russia, estimates a new report. According to the study produced by the country’s crypto industry association, the average monthly turnover of each of these teller machines is around $27,000.
Also read: Crypto Startups Push Swiss VC Investments to a Record $1.25B
Most BATMs Concentrated in Large Cities
The number of bitcoin ATMs around the world has doubled in a year, increasing at an average rate of six per day to reach almost 4,300 devices, according to the latest data provided by Coinatmradar. The majority of these crypto teller machines are located in North America and Europe.
Russia is in the top 10 countries by number of BATMs, according to a study conducted by the Russian Association of Crypto Industry and Blockchain (Racib) and the IT company Nanobit. 51 of the installed devices are registered and in full compliance with the current Russia law.
The report, quoted by RBC, notes that most cryptocurrency ATMs are installed in Russia’s big cities. The capital Moscow has nine working devices, there are five machines in both Omsk and Rostov on Don, while Voronezh and Krasnoyarsk each have three.
Among the ATM operators, the Russian company Rusbit has the largest market share (47 percent), followed by Investcoin24 (28 percent) and BTC O Matic (19 percent). Two months ago, Russia had 75 legally operating cryptocurrency ATMs but in September police seized a number of devices on orders from the Central Bank of Russia. 22 of them belonged to a company called Bbfpro.
The authors of the study have estimated that the average monthly turnover per Bitcoin ATM is around $27,000, or approximately $320,000 annually. The average profit each machine makes is around $1,800 per month.
Legal Uncertainty Deters Crypto ATM Companies
Russian crypto experts say there are several factors restricting the expansion of the crypto ATM market in the country and the central bank’s position on their control is one of them. Another hurdle is the high price of the equipment. A single teller machine supporting cryptocurrency transactions costs between $3,000 and $13,000. Crime is also a major concern as a number of incidents with stolen or damaged machines have been reported.
Arguably, the biggest problem is the absence of a comprehensive regulatory framework for the whole crypto industry. The current Russian legislation does not prohibit the operation of BATMs but the legal status of cryptocurrencies is not determined yet, which prevents major crypto ATM companies from entering the Russian market.
According to Andrei Bedrin, head of IT projects at Nanobit, the number of devices may double in the future. However, this would only happen if Russia adopts laws aimed at regulating the market of digital currencies, he believes.
The State Duma, the lower house of Russia’s parliament, is expected to review a package of three bills designed to legalize certain aspects of the crypto space. The draft laws were voted on first reading in May of last year and the second reading is scheduled for February. In the past few months, the original texts were revised significantly. Key terms such as “cryptocurrency” were dropped but later the definition of “digital financial assets” was broadened to cover coins and tokens.
Do you expect more bitcoin ATMs to be installed after Russia adopts regulations for the crypto industry? Share your thoughts on the subject in the comments section below.
Images courtesy of Shutterstock, Swiss Venture Capital Report 2019.
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via Lubomir Tassev
Cottonwood Becomes Second Cryptocurrency ATM Operator to Receive Bitlicense
U.S.-based cryptocurrency ATM operator Cottonwood Vending has been granted regulatory approval to operate in the state of New York. As such, Cottonwood has become the second cryptocurrency ATM operator to receive a Bitlicense by the New York State Department of Financial Services (NYDFS).
Also Read: Coincheck Registers 1.7M New Users Since Resuming Operations
Cottonwood Granted Virtual Currency License by New York Regulator
On Jan. 31, the NYDFS announced that it had granted a Virtual Currency License to Cottonwood Vending, tweeting that the company is advancing “responsible innovation” in New York’s fintech sector.
The licensing makes Cottonwood the second cryptocurrency ATM operator to receive regulatory approval in New York, and the 21st cryptocurrency project to receive the so-called Bitlicense.
The Virtual Currency License will allow Cottonwood to operate as a legitimate money transmitter and digital currency exchange. To sustain the license, Cottonwood will be required to demonstrate that robust anti-money laundering and cyber securities processes are in place, and maintain transaction records for 10 years.
Cottonwood operates the largest cryptocurrency ATM network in New York, with almost 100 machines currently in place. The company generated $35 million in revenue during 2018.
In November 2018, the world’s largest cryptocurrency ATM operator, Coinsource, became the first crypto ATM operator to receive a Virtual Currency License from New York.
Number of Operational Cryptocurrency ATMs Exceeds 4,000 Worldwide
Despite the bearish market trend, the number of cryptocurrency ATMs in operation has continued to increase in recent months. Last week, Atlanta-based Lux Vending announced that it had deployed 30 machines in the Chicago area since the start of 2019.
Earlier this month, Coinatmradar assayed that the number of cryptocurrency ATMs operational worldwide has exceeded 4,000 for the first time, estimating a daily growth of 4.9 new machines globally. As of this writing, Coinatmradar estimates that there are 4,271 crypto ATMs that are operational worldwide.
Are you surprised by the increasing number of cryptocurrency ATMs despite the recent market conditions? Share your thoughts in the comments section below!
Images courtesy of Shutterstock
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via Samuel Haig
PR: aXpire.io Updates – AXPR HODL Initiative and CoinExchange.io Listing
This is a paid press release, which contains forward looking statements, and should be treated as advertising or promotional material. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the press release.
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- Free entry into weekly 10,000 AXPR Prime contests.
- 1 chance to win per 250K AXPR.
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- once launched – 1 per 250K AXPR.
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- once launched – 1 per 250K AXPR.
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8.5M AXPR (~2.5% of the total supply) is already a part of the HODL program! HODLERS include the team and Bitcoin.com’s Roger Ver / Mate Tokay!
In return for these benefits, AXPR Prime Members sign up to HODL at least 250,000 AXPR for 1 year, which in turns benefits themselves (through “emotional alpha” – HODL through turbulent times) and the broader community. Those looking to become AXPR Prime Members need to sign up for a MetaMask wallet and go to our HODL smart contract interface website: https://hodl.axpr.io/.
For more details on the program, please read our earlier Medium post here: http://bit.ly/2Tnyih6
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In the final piece of exciting news, aXpire is proud to announce its listing on CoinExchange.io, a leading cryptocurrency altcoin exchange. AXPR is proud to join the ranks of top altcoins listed on the platform, and has a BTC / ETH pair:
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Press Contact Email Address
mm@axpire.com
Supporting Link
https://axpr.io/
This is a paid press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.
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via Bitcoin.com PR
South Korea Updates ICO Stance After 3-Month Investigation
The South Korean government has updated its stance on initial coin offerings (ICOs) as well as announced the results of its 3-month investigation of ICO activities carried out by Korean companies. The government found that many companies have bypassed its ICO ban and conducted token sales overseas.
Also read: Indian Supreme Court Moves Crypto Hearing, Community Calls for Positive Regulations
ICO Policy Update
The South Korean government announced on Thursday the outcome of its investigation of ICO activities conducted by Korean companies as well as the future direction it is taking on ICOs.
“With requests to allow ICOs piling up, the government investigated 24 companies and their offerings for three months starting September [2018],” The Investor reported, adding:
The Korean government on Jan. 31 said it will maintain a strict ban on initial coin offerings, saying that a three-month investigation proved they are very risky.
“We will continue to remain cautious about systemizing ICOs,” the office under the Prime Minister’s Secretariat was quoted by the news outlet as saying. “If we suggest guidelines, it can be understood that we approve of ICOs which is a risky investment option.”
The Korean government banned domestic ICOs in September 2017. In December last year, a startup filed a constitutional complaint against the government claiming that the ICO ban is unconstitutional.
Results of 3-Month Investigation
The South Korean Financial Supervisory Service (FSS) conducted an ICO investigation from September to November last year. Twenty-four local companies with ICO projects were asked to cooperate on a voluntary basis. The government sent them a questionnaire and inspected their whitepapers and press releases. The results from 22 companies were analyzed.
The aim of the investigation was to analyze ICOs conducted by Korean companies and establish proper responses, the government said on Thursday.
The regulator found that none of the companies have actually launched their projects but they are all developing platforms or carrying out test services, The Investor elaborated. “Most of the 22 companies were set up as an overseas paper company and carried out ICOs overseas, but were intended for the Korean market.”
The government’s official announcement states that “domestic companies have conducted many ICO overseas,” thus bypassing the government’s ban. They have established subsidiaries abroad, such as in Singapore, with less than 10 million won (~$8,945) in capital and an average of only three employees including the executive of the local company.
Meanwhile, each new token trades at four exchanges on average, with its price commonly falling 68 percent after the first day of trading. The FSS has also found cases of illegal ICO activities such as the issuance and trading of security tokens as well as the selling of investment funds, the government detailed.
The Office for Government Policy Coordination was quoted by The Investor as saying:
There were cases of important investment information missing, such as company introduction, business plans and financial statements … Especially, there was no disclosure on how those funds were used and most of them refused to answer the financial authorities’ request.
What do you think of South Korea’s ICO stance? Let us know in the comments section below.
Images courtesy of Shutterstock.
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via Kevin Helms