Cryptocurrency ATMs in Nevada will now be required to have a license issued by the Nevada Financial Institution Division (NFID).
All crypto ATM operators will be required to pay a $5000 bond for every machine under their watch, which is similar to the regulations that govern the operation of fiat currency ATMs.
Nevada’s new requirements for the licensing of crypto ATMs comes after authorities in the state failed to have the Senate bill No.195 approved.
The law was designed to enable the state to license all crypto ATMs businesses. Through the bill, the Uniform Regulation for Virtual Currency Business Act (URVCBA) would have been put in place.
The bill was met with intense opposition from the crypto community in Nevada who said that the bill was an attack on financial sovereignty and that it was an attempt to control cryptocurrency overall.
Crypto ATM license and bond
According to Teri Williams, spokesperson for the NFID, all ATM operators are required to comply with the new regulations, fees, and bond requirements.
Any entity that has a crypto holding facility or assists in the transmission of cryptocurrency is required to have this license.
This includes any buildings, kiosks, internet-based facilities or any mobile facilities. Operators of these are expected to contact the NFID and get the details about the licensing requirements of the state.
Nevada’s regulators want to use the licensing of crypto ATMs as a way to keep track of the number of these machines in the state and their locations.
The regulators are of the opinion that keeping track of the number and location of ATMs in the region will help in the fight against illegal activity being done using cryptocurrency.
Crypto ATM operators in Nevada are unhappy with the new regulations that have been imposed by the state. Some operators have said that the regulations put in place by the NFID are too strict in comparison to the rules that have been put in place by the Financial Crimes and Security Network (FinCEN) in the Department of Treasury.
Popularity of crypto ATMs growing
The United States is home to over 3000 cryptocurrency ATMs, which is roughly about 60% of the total number of ATMs in the world.
More crypto ATMs are due to be installed in the US as Bitcoin trading becomes more popular in the country.
Several millennials believe that crypto ATMs are cheaper to use than traditional fiat currency ATMs, and this contributes to the popularity of these machines.
There is also a growing mistrust towards governments and regulatory authorities when it comes to money and how it is handled.
Cryptocurrency provides protection from government interference, and there’s an increasing shift towards the use of digital assets instead of fiat currency. Crypto ATMs also allow individuals that do not have any bank accounts to be able to perform any transactions they wish to.