Robocoin has announced the new software for their machines will require Bitcoin ATM operators to collect information from their customers.
This move has been made as a result of attempts to comply with KYC (Know Your Customer) regulations.
The move comes about as a result of the fact that as a registered money services business, they could no longer legally process financial transactions.
“When Robocoin launched one year ago, we offered KYC/AML hardware and software but let operators choose their own compliance strategy,” the company said in a blog on their site. “Some decided to disable compliance altogether.”
We hoped operators would always get to choose KYC vs Non-KYC, but legal requirements have emerged that do not allow the choice. It has become clear that as a registered money service business (MSB), Robocoin cannot support non-KYC machines anywhere in the market. Under our lawyers’ advice, we cannot process anonymous financial transactions. Our operators must comply with know your source and know your destination requirements. Disabling KYC and allowing anonymous transactions create money laundering risks. We cannot violate the law or risk the long term viability of Robocoin and our global Robocoin Operator network.
Robocoin Operators Respond
Robocoin’s new system is a step down from the original platform in terms of user experience. This writer often visited a Robocoin Bitcoin ATM in Toronto, and always had a pleasant experience with it. However, the new interface makes it far more difficult to manage.
The owners of that Bitcoin ATM have expressed frustration at the nature of Robocoin’s decision, but they aren’t the only ones.
In a reddit post, a user who goes by @Jonnybitcoin has slammed Robocoin’s decision and calls up on other Robocoin operators to take action. It has been reproduced below, as it was originally written.
Dear Robocoin Operator,
Like me you paid alot of money for Robocoin machine and it is YOURS.Today Jordan Kelly CEO of robocoin is threatening us all saying he will convert our machine into a login terminal for Jordans own centralised, proprietary, closed source, web based system. This benefits him and his company as it steals YOUR CUSTOMERS and gives him more centralised power.
This is not in the spirit of bitcoin’s decentralised freedom loving roots.
We as robocoin operators need to unite together and install open source software on our machines and cut Jordan out and his fees out.
I have spoken with Lamassu who run free open source software on their machines
It is possible to buy a separate PC that you can run alongside the PC that comes in the safe.
You can then just reconnect the webcam and validator to this new PC and run the machine as a giant Lamassu.
This software may need tweaking to get it working with the cash acceptor that comes in the robocoin.
This is a call for help to the open source and bitcoin community to come together and make these bitcoin ATMs what they should be. Free and open.
I will be turning off my 4 robocoin machines until either Jordan backs down on this and commits to supporting version 1 software as he said he would or we have the machines running on the lammassu software.
I suggest we all turn off our machines together to show we won’t be bullied into his new system.
Please show your support for this project either by replying or adding your voice to the reddit post where I have posted this letter.
Regards
@Jonnybitcoin
Robocoin did suggest that those who operate their machines and are “unwilling to sacrifice anonymity in favor of compliance” could resell their machines to other groups through Robocoin.
For a community like Bitcoin, naturally wary of data collection and government snooping, this move could spell disaster for Robocoin.
Robocoin was the first company to establish a <a href=”http://thecoinfront.com/tag/bitcoin-atm”>Bitcoin ATM</a>, in Vancouver. Since then, the company has 46 machines worldwide, including Canada, the US, Spain, UK, The Netherlands, and Czech Republic.
Robocoin Now Requires Its ATM Operators To Collect User Information
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