Dubai, the most populous city in the United Arab Emirates (UAE) which is famous for its modern architects and luxury shops, recently got its first Bitcoin ATM. Dubai residents and tourists can now buy number one crypto, Bitcoin, through the ATM, without identity verification (KYC).
An ATM machine that is able to receive cash and issue Bitcoin is located in the Jumeirah Beach Residence area of the Rixos Premium building, a five-star hotel. This location has the most crowded Dubai tourist attractions, such as the Dubai Eye, Marina Mall and Mall of the Emirates. It is estimated that there will be more Bitcoin ATMs installed in crowded areas such as Jumeirah Beach.
The opening of the first Bitcoin ATM in Dubai was an important event, but more importantly, customers who wanted to buy Bitcoin did not have to provide identity information as part of KYC (know-your-customer). In fact, digital money is called risky by the FATF (Financial Action Task Force), an international organization that fights money laundering and terrorism funding.
According to Anhad Dhingra, CEO of Amhora, the company that owns the Bitcoin ATM, customers can remain anonymous when buying Bitcoin using cash and only need to provide a Bitcoin address to receive the digital money.
However, customers cannot sell their Bitcoin through the ATM. This feature will be implemented within a few months, and unlike the purchase process that does not need an identity, the customer must show an Emirate identity card or their passport to sell Bitcoin.
As a transaction fee for buying Bitcoin from Amhora machines, the company charges a commission of 5 percent of the total amount of Bitcoin purchased. That number sounds high enough for crypto users who are accustomed to buying Bitcoin from the exchange, where transaction costs are generally lower. However, compared to the industry average of 7.5 percent of the ATM Bitcoin, the figure is quite low.
"This commission is very interesting because customers can buy Bitcoin instantly. If not, customers must go through a number of procedures that take time, "said Dhingra.
Through the Amhora Bitcoin ATM, customers simply enter cash and get Bitcoin instantly. Although people can buy Bitcoin through bank platforms and debit cards, because Amhora accepts cash, the process becomes different, added Dhingra.
According to data from Coin ATM Radar, there are currently 4,432 digital money ATMs worldwide, spread across 78 countries and operated by 549 different companies. The United States has the highest number of crypto ATMs in the world, followed by Europe and the Asia Pacific region.
As the first Bitcoin ATM in Dubai, Dhingra said the machine facilitated the process of buying Bitcoin for UAE citizens. In addition, he hopes Amhora can increase the number of Bitcoin ATMs in Dubai over time.