Bitcoin ATMs On the Rise in Russia

The number of bitcoin ATMs is on the rise in Russia. Ten of them were recently installed in five districts of Novosibirsk by a local startup. Last week, a different company announced their plans to install a hundred cryptocurrency ATMs in Moscow hotels and airport terminals starting this month. Meanwhile, the regulators have said that they will not legalize cryptocurrencies anytime soon.

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Novosibirsk’s Ten Bitcoin ATMs

In Russia’s third most populous city, Novosibirsk, ten one-way bitcoin ATMs were recently installed by a local startup BBFpro, according to RBC. The machines were placed in five districts of the city; Kalininsky, Zheleznodorozhny, Oktyabrsky, Leninsky and Kirovsky districts, detailed the company’s director, Anton Friedel.

Most of the terminals are located in stores selling bottled beverages, he told the publication. “All ten devices are located in such a way that each resident of the city has the opportunity to quickly and easily reach the point of sale of bitcoins,” he was quoted. His team originally wanted to place them in the city’s large shopping centers, but the rent is too high, he elaborated, noting that:

Large shopping centers requested a rent which is almost impossible for us as a startup. The amount for one place reached 15-20,000 rubles, while in beer shops we pay 2,000 rubles for each place.

He also revealed that it took his team about three months to develop software and install the terminals, adding that the project cost about two million rubles. The machines charge a commission of 6%. “We made such a small percentage because we are counting on a large flow of customers,” RBC quoted him saying. According to him, BBFpro currently has no competitors in Novosibirsk.

In the near future, Friedel said he plans to expand his network of cryptocurrency ATMs in Novosibirsk as well as to neighboring areas. He specifically named Kemerovo, Krasnoyarsk, Barnaul, and Irkutsk. In addition, “we are developing a terminal that will not only sell but also buy cryptocurrency,” he explained, adding that they also plan to start selling other cryptocurrencies.

100 Crypto ATMs Coming to Moscow

Last week, Rambler News reported that approximately 100 one-way cryptocurrency ATMs will be coming to Moscow between this month and the year’s end. They will be installed by Investcoin24 throughout the city center such as in hotels, according to the company’s co-owner, Pavel Panova. In addition, he added that negotiations are currently underway with airport owners for some units to be installed in their departure and arrival areas.

The machines can be programmed to sell four cryptocurrencies, Panova explained, adding that they can also sell Initial Coin Offering (ICO) tokens. Initially, the commission will be 4%, he told Innov publication.

Last month, Investcoin24 installed a one-way bitcoin ATM at the Moscow restaurant “Vintage77,” according to an Instagram post by the founder of Iventurer Foundation, Alexey Olin.

Another restaurant in Moscow, Valenok, which started accepting bitcoin payments in June also said that they have plans to install a bitcoin ATM if there is demand from customers, according to RIA Novosti.

Regulatory Uncertainties

The number of cryptocurrency ATMs is growing in Russia despite the government saying that they will not legalize cryptocurrencies anytime soon. The Deputy Finance Minister Alexei Moiseev said last month that “bitcoin settlements in Russia will not be legalized.” His statement followed a meeting where the regulators could not agree on how to regulate cryptocurrencies and decided to postpone their plans to draft a regulatory framework for them to next year. The central bank, however, is adamant that these instruments cannot be treated as money substitutes.

Friedel told RBC that he hopes to advertise his bitcoin ATMs to attract more customers. However, since cryptocurrencies are currently unregulated, many large platforms refuse to advertise them, he explained. In addition, he is uncertain how his cryptocurrency business will be taxed. “We will provide the tax authorities with documents, but we do not know whether they will accept them,” he elaborated.

Do you think Russia will allow bitcoin ATMs to flourish across the country? Let us know in the comments section below.

Images courtesy of Shutterstock, Alexey Olin, BBFpro, and RBC.

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