Bitcoin ATMs – Planning on getting started with Bitcoin ATMs? If so, you’re making a smart choice for your business. Since roughly 60% of the world’s Bitcoin ATMs are located in the United States, it makes sense to invest in Bitcoin ATMs, especially if you want to capitalize on the coming ‘tidal wave’ of demand for Bitcoin due to the instability of the dollar.
Legally Set Up Your Business First
Before you go out and buy your first Bitcoin ATM, it’s important to take the time to invest in properly setting up your business first by forming a corporation, or LLC, and obtaining the required state and Federal licenses that are required to run a Bitcoin ATM.
Once your business is set up, the next thing to do is review State and Federal Bitcoin regulations, including the Bank Secrecy Act, before you take the steps to invest in your first Bitcoin ATM.
Register With FinCEN
After setting up your corporation, or LLC, the next thing to do is register with the Financial Crimes Enforcement Network (FinCEN) because your business will be considered to be a Money Services Business (MSB), and the Government requires these types of businesses to register with FinCEN.
Registering online with FinCEN takes about 45 minutes, and it’s something that you must do within 180 days of starting your money services business.
Once you initially register, you will then have to renew this registration every two years, and you will also be required to do the following:
- Establish an anti-money laundering compliance program
- Appoint a compliance officer who is dedicated to stopping money laundering in your company
- Create a customer profile so you can know who your ideal customer is. This will enable you to spot risky ones, and prevent fraud.
- Monitor customer transactions and be prepared to report any suspicious or criminal activities.
If you haven’t created a BSA compliance program before, it’s best to hire an outside consultant or a local attorney because they can create a compliance program that you can adhere to when it comes to hiring contractors and collecting information.
Once you’ve officially launched your first Bitcoin ATM, it’s important to also focus on maintaining your team who can assist you with following your compliance policies, and collecting/retaining transaction data because you want to have those records available if you ultimately get audited by the IRS.