Dubai’s first Bitcoin ATM, installed on March 19, was removed just 2 days after its launch, due to lack of AML/KYC obligations for the purchasing of Bitcoin (BTC).
Earlier this week, IIB reported on the launch of Dubai’s first Bitcoin ATM, highlighting its most intriguing aspect — that users could purchase Bitcoin with cash while staying completely anonymous, no questions asked.
The ATM was installed in the Rixos Premium, a luxury hotel and wellness center in Dubai’s Jumeirah Beach Residence (JBR).
Users were not required to provide any form of identification or know-your-customer (KYC). All they needed was a Bitcoin receiving address and cash with which to make the purchase. The ATM did not offer a function for users to sell Bitcoin, although that was meant to come in the future.
Dubai First Bitcoin ATM Lasted Less Than a Week
Unfortunately, such easy access to the Bitcoin market was not to be. The removal of Dubai’s first Bitcoin ATM ruins a nice streak of bullish developments happening in the UAE.
For instance, earlier this week, the chairman of the UAE Banks Federation announced the development of necessary frameworks for the cryptocurrency and blockchain industry. Before this, IIB reported that the UAE was among the top countries investing in ICOs, having raised $210 million in January and February 2019 alone.
Therefore, the fact that Dubai’s first Bitcoin ATM lasted less than a week is disappointing for many, especially since the installment of Bitcoin ATMs has really been gaining traction as of late.
According to the owner of the machine, Amhora said they are working closely with the relevant authorities and are working to reinstate the machine after they fulfill all AML/KYC obligations.
Therefore, it appears that anonymous Bitcoin buyers are out of luck, as Amhora’s machine must follow AML/KYC obligations after all.