You can’t buy unlimited amounts of Bitcoin from Bitcoin ATMs. No two operators are the same in how they handle their Bitcoin ATM limits, and the numbers may seem arbitrary or hard to find. In this article, we break down everything you need to know about Bitcoin ATM limits, what they range from, and why they exist.
Bitcoin ATM Limits By Operator
Before you go to a Bitcoin machine near you, make sure you take a look at the limits and the verification required. Bitcoin ATM operators set their own upper and lower limits, but they “must register with the Financial Crimes Enforcement Network (FinCEN) and comply with anti-money laundering provisions of the Bank Secrecy Act (BSA),” according to Investopedia.
Bitcoin ATM Minimums
Most Bitcoin ATM minimums start at $20. This means that in order to complete a transaction, you must insert at least $20 into the machine. Coinsource’s minimum transaction is $5 at all locations.
Bitcoin ATM Limits
Bitcoin ATM limits on purchases and withdrawals range from $3,000 – $9,000 per day. However, many operators require tiered levels of account verification at the ATM to reach their true limit. This may require your: Address, ID, Social Security Number and transaction sign-off.
Coinsource’s transaction range is $5 – $8,500 per day. All verification can be done online at home within minutes with Coinsource’s remote enrollment process, which means you won’t have to worry about submitting ID at the kiosk!
Why Do Bitcoin ATM Limits Exist?
Bitcoin ATMs enforce limits for three reasons: practicality, security and compliance.
Practically speaking, having no upper limits on purchases would make it difficult for multiple customers to use the ATM. All Bitcoin ATM machines have a maximum amount of cash they can store. The operators set limits for purchases in order to keep the machine up and running all the time. This way, the Bitcoin ATM won’t need to close because the money storage is full.
Additionally, the ability to withdraw as much money as we want from a Bitcoin ATM means it could run out of money, preventing subsequent customers from withdrawing cash. Placing limits on withdrawals in particular allows the operators to be able to keep cash in their machines for more than just one individual to withdraw. This allows more people to use the machine.
Bitcoin ATMs just don’t have the same issues with security like banks do. Most consumers use their banks’ credit and debit cards regularly. Cashiers handle these, customer representatives request their numbers via phone, and we save them to online accounts. Without limits, someone could snag your debit card and withdraw your entire account.
Bitcoin ATMs compliant with FinCEN avoid these common issues by enforcing a Know Your Customer (KYC) program. This allows Bitcoin ATM operators to know that you’re the one depositing or withdrawing money into your account. In doing so, you’re more protected from nefarious individuals being able to withdraw your funds through a Bitcoin ATM, even if they obtain your information.
To keep customers safe, Bitcoin ATM operators also have limits in place to stagger the volume of Bitcoin that can be purchased at any given time. This way, if a customer falls prey to a scam, it can be reported and remedied before more funds are sent.
Bitcoin ATM operators set purchase and withdrawal limits on Bitcoin to comply with anti-money laundering (AML) regulations. These limits can vary slightly by operator in order to be in compliance. But beware that if a Bitcoin ATM operator is allowing limits of $10,000 or more without the need to submit ID, that operator is not in compliance with AML regulations and is disobeying the law. By following anti-money laundering rules, Coinsource (and other FinCEN compliant operators) are ensuring the safety and security of their customers and obeying the law.
More Questions on Limits?
This concludes our guide covering everything you need to know on Bitcoin ATM machine limits! If you have any other questions, contact our support team! We’d be happy to help.
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Coinsource is the world leader in Bitcoin ATMs. With a focus on compliance and ease of use, Coinsource is aiming to bring Bitcoin to the masses. Follow for blogs about Bitcoin, finance, company updates and Bitcoin ATM information!