Page 32 - GS240201

Education

What to consider providers make up most of the market with roughly 25,000
BTMs on their platforms. Hardware providers include
when choosing a manufacturers such as Genmega that already produce
kiosks and ATMs for other purposes, as well as Bitcoin-
specific kiosks.
BTM provider In addition, other manufacturers only produce BTMs and

no other kiosks or ATMs for other industries.

One of the leading software providers Bitaccess has had
BTMs operating on its platform for around 10 years. The
company provides support for multiple types of hardware
and has had dozens of operators using its software for
many years.

Operator licensing and compliance
The first consideration when choosing a BTM provider is
its commitment to licensing and regulatory compliance.
Partnering with an operator registered with FinCEN as a
money services business and licensed in all jurisdictions
where it is required will help ensure that BTMs in your
retail partners' locations operate legally and adhere to all
local and federal regulations. Compliance is crucial in
protecting your business, as well as your merchants and
their customers.
The seriousness of anti-money laundering (AML)
and know your customer (KYC) regulations cannot
be overstated. A reputable operator will have a full-
By Brandon Mintz time compliance officer with supporting staff, conduct
Bitcoin Depot transaction monitoring, and report suspicious activity.
AML and KYC procedures help verify the identity of
he surge in cryptocurrency adoption is unmis- customers while preventing suspicious transactions
takable, and for retailers and investors this from happening as much as possible. Robust compliance
trend opens up new business avenues, such as measures protect all stakeholders and the integrity of the
T hosting a Bitcoin ATM, also known as a BTM, cryptocurrency ecosystem as a whole.
in-store or investing in a BTM operation as a franchise
operator. Additionally, these measures along with additional scam
and fraud prevention policies serve as a way to protect
BTMs provide customers a convenient way to buy bitcoin, customers from criminals. Reputable BTM operators work
and the foot traffic they attract provides retailers with to prevent this by implementing practices that make it
an opportunity to increase revenue. Of course, not all harder for illicit activities to occur at their machines. These
BTM operators are created equal, and the market has a include, for example, scam warnings on BTM screens and
varied range of BTM operators. Currently, according to not allowing customers to send to a wallet owned by a
Coinatmradar, there are 215 BTM operators in the United third party.
States, with 79 percent of all domestic BTMs being operated
among 10 companies. A BTM operator should have stringent data security
protocols in place to protect sensitive customer data.
Hardware and software reliability Doing so will have a twofold effect: First, it will create
The hardware and software components of a BTM are a sense of trust and transparency between the operator
the heart of the machine. Reliable and well-maintained and the customer; second, it will reduce the likelihood
hardware ensures smooth transactions, reduces downtime that a customer gets hacked or scammed. Diligent record-
and minimizes maintenance costs. Similarly, the associated keeping of transactions for AML and KYC purposes is vital
software must be steadfast, intuitive and receive regular for potential audits and contributes to industry legitimacy.
updates to enhance features and security measures. Marketing and name recognition

Dozens of hardware and software options are available, Choosing an operator with an established reputation and a
but according to Coinatmradar.com, the top three software trusted brand presence in the industry will go a long way

32