How an Underdog Won the Race to Bring Bitcoin ATMs to the U.S.

lamassu_bitcoin_atm

25 Feb 2014 / Mashable – Bitcoin fans can now buy the cryptocurrency from a physical machine in a public location in two of America's 50 states. And while California and New York remain the country's primary tech hubs, these states are still not within view of the finish line in the race for Bitcoin vending machines, which are also commonly called Bitcoin ATMs.

Instead, New Mexico and Massachusetts installed the first and second ATMs in the U.S., respectively, thanks in large part to more lenient local regulations. Meanwhile, entrepreneurs on the two coasts claim they are eager to comply, but say that local regulators have been slow to provide answers, and current guidelines are vague or cost-prohibitive for small operators.

"The current situation in New York does not favor any operator in Bitcoin," Willard Ling told Mashable. "The regulations are very restrictive on creating new [Bitcoin] businesses."

Ling is attempting to install a Bitcoin vending machine in a bubble tea shop in New York City's East Village. He purchased one of the machines, which cost $5,000, from a New Hampshire-based company called Lamassu in December. Since then, he's been working with his lawyer to clear regulatory hurdles.

At the federal level, Bitcoin machine operators must register with the Treasury Department's Financial Crimes Enforcement Network (FinCEN) and set up an anti-money laundering program….. Read more

http://mashable.com/2014/02/25/bitcoin-atm-new-york/

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