Our New Compliance Standards

Congressman Jared Polis purchases bitcoin at Robocoin’s KYC / AML demonstration on Capitol Hill.

As we continue to help define Bitcoin’s Know Your Customer (KYC) best practices, we’re making a significant change to our business. Protecting our network requires the highest KYC / Anti-Money Laundering (AML) compliance standards, including disallowing anonymous transactions. We make business decisions with scalability in mind. It is not worth risking legal repercussions and longterm viability to accommodate those who favor anonymity over regulatory compliance.

When Robocoin launched one year ago, we offered KYC/AML hardware and software but let operators choose their own compliance strategy. 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.

In the year since launching, Bitcoin and the Bitcoin ATM industry have matured. As the legal landscape becomes clearer, Robocoin evolves and so do the requirements with which we must comply.

The urgency of KYC compliance is continuing to become more clear. First, competitors’ non-KYC machines started dissapearing. Another competitor’s non-KYC Bitcoin ATM got seized in a drug bust. Robocoin remains one of Bitcoin’s leaders in AML / KYC compliance and thankfully our entire network has avoided removal or seizure. Still, events like this represent legitimate warnings. Now, beyond these warning signs, our legal council is warning that FinCen is going to begin making examples out of non-compliant Bitcoin companies.

With Robocoin 2.0, we’re requiring KYC compliance and removing outside dependencies including wallet uptime, exchange uptime, paper redemption tickets, mobile wallet unreliability, lost paper wallets, and others. Robocoin 2.0 is our vision for solving these problems and the Bitcoin industry’s early impressions have been positive (watch reactions from our Robocoin 2.0 debut: part 1 and part 2). At the same time, we’ve loosened where possible, including deprecating the palm vein scanner and speeding up first time enrollment.

For operators unwilling to sacrifice anonymity in favor of compliance, we’re offering to resell their machines. Our legal compliance is paramount to our continued legal operation, and we cannot risk the future of the company to allow anonymity. We remain committed to delivering industry-leading AML/KYC technology and helping proliferate Bitcoin legally.

Robocoin Goes Hollywood and Launches Middle East’s First Bitcoin ATM

Hollywood and Venice Robocoins launch Saturday June 21st; Robocoin Tel Aviv is live

Within one week we will have launched the first Bitcoin ATM in the Middle East and the first two Bitcoin ATMs in L.A. – Hollywood and Venice Beach. “I’ve always believed Robocoin would rub elbows with A-listers and bring peace to the Middle East. But who would have thought–both in one week?!” CEO Jordan Kelley joked, hyperbolically.

But really, this hints at our team’s ambitions to change the world. We’ll start with banking and remittance then see about the world peace part. The fame? We’re just hoping Bitcoin gets more and more well-understood and continues marching towards its potential.

Robocoin-Tel Aviv is live in the lobby of the TOWN-HOUSE TLV hotel, an absolutely gorgeous boutique hotel. It’s open 24/7 in the heart of Israel’s financial district and high-tech sector. Fun fact about Robocoin Operator Nimrod Gruber, CEO of BITBOX: “Nimi” is also a male model. Bitcoin, so hot right now.

Meanwhile in Los Angeles, Robocoin is joining influential retail concept Locali Conscious Convenience at its Hollywood and Venice Beach locations. Southern California’s first two Bitcoin ATMs will make waves. Locali Hollywood is frequented by A-List celebrities and tastemakers, while the Venice Beach location is a popular in the up-and-coming tech community dubbed Silicon Beach.

Launching LA on the eve of our banking and remittance release is big for the LA–Mexico remittance corridor. Robocoin 2.0 will let customers send money instantly to any phone #, email address, or Bitcoin address around the world.

This is also a first for Robocoin in that Locali wanted a Robocoin, while our friends at Expresscoin were looking for more locations. Cue Robocoin the matchmaker and the rest is history. So, if you own a location and want a Robocoin – or want to operate Robocoins but need help finding locations, let us make magic happen: sales@robocoinkiosk.com.

From the window to the western wall,

Sam

April 2014 Update

It’s been quite the 2014. With Spring upon us, Robocoin is blossoming. We’ve created Bitcoin’s global cash network, demo’d for members of Congress and doubled the size of our team.

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EXPANSION. Robocoins are live in Japan, Australia, London, Israel, Singapore, Canada and the United States (Texas, California and now South Carolina). There are 13 Robocoins in operation exchanging bitcoins for Yen, Australian Dollars, Pounds, Singapore Dollars, Shekels, Canadian Dollars and US Dollars respectively. Shipped and coming online next: Italy, Ireland, Italy, Hong Kong, Mexico and more domestically.

GLOBAL CASH NETWORK. In less than 6 months we’ve already shipped 35 units around the world. Before summer we will have shipped another 50. Most importantly, we’re doing it the right way – providing our Operators industry leading compliance capabilities, ensuring their business lasts for decades.

BRINGING BITCOIN TO CAPITOL HILL. Our compliance leadership was emphasized on April 8th when we demo’d Robocoin for members of Congress. One Congressman went so far as to call our palm-vein technology “the best password in the world.” Check out Robocoin + Congress video highlights and coverage from TIME and the Wall Street Journal. We took the demo opportunity to champion Bitcoin’s virtues, dispel its myths and demonstrate that Bitcoin is here to stay. CTO John gave some sage advice to congressmen – urging them to “wait and see” what bitcoin can bring to the world before over-regulating.

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TEAM. Our goal is to build the best team in the game – folks who are passionate about building powerful tools for bitcoin and delivering amazing service to Operators and customers. We just brought in our eighth team member to Robocoin HQ in Downtown Las Vegas, a group that now includes six engineers. Now we have dedicated Operator-support engineers to go along with our A+ developers. We also teamed up with a top design firm in the southwest and are still working with the best kiosk factory in the U.S. Along with our eight full-timers, we now have over 20 partners, contractors and vendors supporting Robocoin’s efforts.

We understand that Bitcoin never stops evolving and the community never stops demanding excellence. Our community has the highest bar in technology and the highest self-policing bar in the world. We love that bar, we strive to hurdle it with every push, launch and update. Truth is, we’re just getting warmed up.

… We’re announcing something big on May 1, 2014, stay tuned.

Jordan Kelley

0%

In our never ending effort to offer the most scalable, compliant and profitable service, we’re excited to introduce 0% fees to all Robocoin Operators.

Robocoin’s goal is to bring bitcoin to the world. Just as we lead the industry with compliance and security technology, global accessibility and uptime, we’ll continue leading with the lowest fees to nurture bitcoin adoption and availability.

Robocoin purchase options:

$20,000 + $10,000 lifetime license (introductory price until April 30) + 0%

or

$20,000 + 1%

Ready to become a Robocoin Operator? Email sales@robocoinkiosk.com and let us know which purchase option you’d like.

Existing Robocoin Operators: starting in April, you’ll be auto-enrolled in 1% fees and immediately begin earning more. Email us if you’re ready to purchase a lifetime license and never pay transaction fees again.

There was a race to 0% fees. Welcome to the finish line.

On Mt Gox

The Mt. Gox failure marks the end of bitcoin’s youth. New bitcoin companies are stepping up with institutional grade consumer protection, services, and government compliance – companies like @Blockchain @Coinbase @Bitstamp and @Robocoin. Bitcoin is robust and resilient. The protocol and fundamentals remain unchanged. Its businessmen and engineers are building tools to give consumers confidence that Bitcoin security, accessibility and storage are trustworthy. It’s a shame that many people lost money, but when underperforming businesses are replaced by innovative ones, the economy grows stronger. It’s a good day as bitcoin continues to grow up – a few blemishes along the way are natural and healthy. We expect bitcoin to grow even faster in the days ahead.

- Jordan

Robocoin Exceeds $1,000,000 CAD transaction volume on 29th Day Live

Vancouver, B.C. Robocoin, the world’s first Bitcoin ATM, continues to ride a caffeine-and-media induced buzz. On just its 29th day of operation, the first Robocoin has exceeded $1,000,000 CAD in volume from 1,576 transactions. Over one half of the buy-transactions generated new wallets, suggesting that Robocoin continues to attract first time bitcoin users.

In the days since Robocoin’s launch announcement the price of Bitcoin has jumped from $177 USD to $881 USD (on the Bitstamp exchange according to Bitcoincharts.com.) While China’s bitcoin enthusiasm and a remarkably positive US Senate hearing helped lead bitcoin’s recent price surge, Robocoin contributed by injecting unprecedented present and perceived bitcoin liquidity along with favorable press, mainstream acceptance and technological leadership with Anti-Money Laundering and Consumer Protection compliance.

Those familiar with Bitcoin have long lamented the historically arduous exchange process and have been delighted by Robocoin’s ease-of-exchange. Some customers used their newly purchased Bitcoins to buy coffee at the Bitcoin-accepting Waves location, while others impressed their parents by exchanging Bitcoins for Canadian dollars.

Robocoin #1, Month One Timeline:

•Day One: Robocoin opens for business inside the Waves Coffee House at 900 Howe St., completes over $10,000 transaction volume from 81 transactions between Bitcoin and Canadian dollars.

•Day Seven: first week transaction volume of $81,000 CAD exceeds first-month goal of $50,000.

•Day Eight: Robocoin exceeds $100,000 CAD transaction volume from 348 exchanges.

•Day 17: Robocoin breaks even for operators (fee revenue = operator hardware price)

•Day 29: $1,006,550 from 1,576 transactions

Press Resources:

Robocoin Press Images

Robocoin Demo

•Robocoin is family friendly: men, women, children and babies love Robocoin.

•Robocoin is media friendly: Forbes called us “the machine face that launched a thousand articles,” thanks to coverage in Wired, Time, New York Times, Washington Post, Huffington Post, Nasdaq, Mashable, Reuters, Gizmodo, TechCrunch, Venturebeat, The Daily Beast, Business Insider and others. Seriously, we love you.

Robocoin is En Route

Today is big. The first Robocoin is en route to Vancouver.

We are incredibly passionate about the product we’ve put together. Robocoin will be the easiest, quickest, most convenient way to both buy and sell bitcoin ever.  Say goodbye to pesky bank wires, archaic verification processes, and weeks of waiting time to get money converted. Using only the best bank grade hardware, Robocoin is capable of instantly handling transactions in the thousands of dollars.  Not only does this provide incredible convenience for Bitcoin owners, but this also has the potential to change the entire remittance industry.

Robocoin on the loading dock

One of our main goals is to bring Bitcoin to the masses which means making the buying and selling of Bitcoin truly human friendly.

By mixing the familiarity and convenience of the ATM with powerful Bitcoin software, buying and selling Bitcoin for cash will now be the simplest form of transacting to boot.  CASH IS KING.

We just wanted to tell the world how excited we are to finally get this game-changing machine out into the wild. We can’t wait to hear your thoughts. We can’t wait to help solve your problems.

We’d like to give a quick shout out to our incredible partners, Bitcoiniacs. Mitch, Cheyne and Jackson understand the importance of providing the world convenient Bitcoin liquidity with their storefronts. With Robocoin, they will now be able to scale their business across Canada and soon the world.

Thank you all so much. Here’s to next week.