Bitcoin ATMs operators in Nevada are now required to have a licensing scheme to operate in the country, as per a statement from the state lawmakers.
August 30, 2019 | AtoZ Markets – Nevada’s regulatory stance on cryptocurrency ATMs has shifted, as authorities in the state now require their operators to have a state money transmission license.
Bitcoin ATMs operators in Nevada must conform to the existing rules
According to the state’s finance regulator, the Financial Institutions Division of the Department of Business and Industry (NFID), having a license and abiding by the existing rules are prerequisites for operating a Bitcoin ATM in the country, Nevada Current reports.
“Any entity that facilitates the transmission of or holds fiat or digital currency by way of brick-and-mortar, kiosk, mobile, internet or any other means, should contact the NFID to request a licensure determination,” said Teri Williams, a spokesperson on the issue.
Moreover, the statement references a proposed law earlier in 2019, during which lawmakers failed to enact the S.B. 195, an amendment to regulate Bitcoin ATMs operators in Nevada. The NFID also cited several other laws that are related to money transmission — NRS Chapter 671 and 679.
The statement summarizes:
“Over time, the NFID has monitored the growth and expansion of the blockchain, bitcoin, and virtual currency industries.”
“Recently, several businesses and interested persons contacted the NFID to determine if a license was required to operate within the State of Nevada. Based upon the business model presented, a license may have been required for money transmission under NRS Chapter 671.”
Bitcoin ATM sector keeps growing amid challenges
The number of crypto ATMs has continued to increase. Currently, there are a total of 5,500 globally and out of these, Nevada has 110 Bitcoin ATMs according to CoinATMRadar. However, the United States, being the world’s biggest owners of these machines has about 3,500.
While this sector continues to see considerable growth, it has become an ideal method for illicit activities such as fraud and money laundering. Back in June 2019, the mayor of Vancouver suggested that Bitcoin ATMs should be banned due to money laundering concerns.
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