By 3 News online staff
New Zealand's only two-way bitcoin ATM has been voluntarily shut down with its owner saying banks made it too difficult to operate.
The Robocoin ATM, housed in the Ironbar café on Auckland's K Rd, had been in operation for just over a month but yesterday a statement went up on the bitcoin-ATM.co.nz website saying it was being closed down.
"Unfortunately, despite complying with all the legal requirements we have been unable to secure banking facilities," the statement says.
"The negativity from the banking sector to Bitcoin also threatens the ATM owner's other businesses."
That owner, Mike Steeneveld, did not return calls seeking an explanation about the circumstances, but did shed some light on the social media website Reddit.
"I was fully compliant with [anti-money laundering] laws, but regardless of this all of the banks refused to open a bank account," he wrote.
"They don't have to give you a bank account if they don't want to. I also faced the threat that my other accounts could be closed down. This has happened in Australia. It wasn't worth the risk to me."
Some commenters in the Reddit thread suggested New Zealand banks were acting nefariously in an attempt to shut down competition. However, XBT Consulting business analyst Paul Salisbury, who specialises in bitcoin, says this is unlikely.
"It's not necessarily that banks are acting in an anti-competitive way, but they're acting in a very risk-averse way," he says.
Mr Salisbury says New Zealand's anti-money laundering laws are newer than a number of countries, including Australia, so banks are being cautious as they learn to interpret and enforce them.
"[Mr Steeneveld] has talked with the most banks out of everyone in the bitcoin startup community, really trying to engage them in a dialogue," he says.
"In refusing to discuss what's an acceptable risk, New Zealand banks are stifling innovation in this sector."
The ATM was the only one in New Zealand offering a two-way service, allowing people to buy and sell the cryptocurrency. Two ATMs owned by rival Bitto only allow the purchasing of bitcoin.
3 News
source: newshub archive
