IRS Vs. Bitcoin ATMs: Industry Says There Is Already Enough Regulation
Stephen O'Neal's original article for cointelegraph.com reduced by 47%
Bitcoin ATMs remain a low-transaction-size business which is already regulated enough to detect high-scale fraud. More specifically, there are 3924 machines installed across the country, accounting for over 65% of the world's total Bitcoin ATMs. Moreover, the industry continues to develop at a rapid pace: Over 130 machines have been deployed this month alone, while the average daily number of Bitcoin ATMs installed is fluctuating at around seven.
Rew Barnard, co-founder of Bitcoin ATM firm Bitstop, added that many states, including California, have still not made up their minds in regard to Bitcoin ATMs or do not require a Money Transmitter License as long as the crypto sold through the ATMs is a two-party transaction. "States like Texas and others do not require a money transmitter license if you are selling your own Bitcoin to the person in front of the machine as opposed to just sending the Bitcoin directly from an exchange to the customer which would make it a three party transaction." "Let's paint a scenario, if you are a Bitcoin ATM user in the US, and you declare those transactions on your tax return, the IRS could be in breach of constitutional rights by investigating the individual. Essentially, the IRS should not be able to tax activity it then deems as 'illegal' activity after the fact.
Otherwise, where do we draw the line? Do we begin taxing drug dealers?". "The IRS has been amenable to these clients and their businesses, asking for and accepting without issue the Bitcoin ATM users' Know Your Customer information, which is collected to the extent possible by Bitcoin ATM operators per compliance with MSB rules." "The average purchase from our Bitstop Bitcoin ATMs is $180 per person. Bitcoin ATMs are a high-volume, low transaction amount business..
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Summarised crypto news.