We’ve received quite a few inquiries about Robocoin compliance and I’d like to shed some light on the state of compliance in Bitcoin.
Depending on your jurisdiction (country, state, etc.) compliance requirements differ. With this post, I’m going to focus on US compliance because it is by far the most strict and will likely set a precedent for governments to come.
Disclosure: I am not an attorney and the information provided below is not legal advice; it is information only. I recommend seeking counsel from an attorney.
Good news part 1 – The Government is cool with Bitcoin and they want businesses to play ball with their regulations.
The US Federal Government has considered Bitcoin a Virtual Currency. This, contrary to popular belief, is not a terrible thing because compliance methods are well documented. The Government does not consider Bitcoin a threat, nor should they, they merely want anyone transmitting Bitcoin for currency to adhere to the regulations that keep their citizens free of harm. Federal and State governments care about ensuring that:
1. Operators are not laundering money, financing terrorism or engaging in fraudulent activities.
2. Operators are protecting the customers (the government’s citizens) by not stealing money or committing fraud.
Robocoin Operators are indeed Money Service Businesses and need to register as a Money Service Business on the Federal level and get licensure with the State in which they are operating:
1. Compliance on the the Federal level is as easy as registering as a Money Service Business, ensuring that the business maintains full Anti Money Laundering & Know your Customer compliance.
2. Licensure by the State in which the business is operating is a much more difficult, expensive and time consuming task. Operators must apply for license and prove that the business they are operating is legitimate, bonded, insured and limits customer risk. Each state’s licensing and bonding requirements are unique and should be researched in depth before applying.
The US Financial Crimes Enforcement Network (FinCEN) set the bar for compliance very high and Robocoin fully embraces and supports the laws that govern Money Service Businesses. The process may seem arduous, but in order to provide the people with the easiest access to Bitcoin, Robocoin Operators must go through the proper measures.
Good news part 2 – Robocoin knocks the ball out of the park when it comes to adhering to regulation and compliance.
Robocoin software, coupled with bank grade hardware, was built from the ground up to operate with 100% compliance in the United States.
Operators, via the Robocoin dashboard. have the ability to fully know their customer by creating accurate user profiles: Customer’s information is gathered by Driver’s License/ID scans, matching the License/ID photo with a live photo taken by the Kiosk automatically, and finally, using the palm vein scanning technology, Robocoin is able to finalize and verify the customer’s profile with biometric authentication. The operator has full capability, via the dashboard, to approve or deny any customer.
Conclusion. This is going to be awesome.
Robocoin is here to provide people the easiest way to buy and sell Bitcoin. The only way we can execute our mission is to play ball with governments. Ultimately, we believe that the more Robocoins in circulation, the more people will hold Bitcoin, the more the currency will be validated, the stronger it will become.