Former Venezuelan Gold Mining Company Wants to Centralize Bitcoin ATM Infrastructure

Published on by Coindesk | Published on

First Bitcoin Capital Corp. wants to unite the providers of bitcoin ATMs around the world.

A one-time Venezuelan gold mining outfit-turned multinational crypto startup, First Bitcoin registered with the Securities and Exchange Commission last week - an initial step, said CEO Greg Rubin, in providing fragmented bitcoin ATMs a new network.

His plan: link thousands of ATMs run by dozens of often small-time operators with a comprehensive know-your-customer, transaction monitoring and regulatory compliance solution that streamlines every aspect of the back-end business.

"We want to create a consortium of bitcoin ATM operators and put them on the global ATM network," Rubin said.

First Bitcoin has been active in the crypto space for years, offering a bitcoin exchange and ATM services.

The SEC temporarily suspended trading of its shares in 2017.First Bitcoin's network hinges on its recently acquired 2015 patent.

U.S. 9,135,787 B1, otherwise known as "Bitcoin Kiosk/ATM Device and System Integrating Enrollment Protocol and Method of Using the Same," came under First Bitcoin's control last summer in exchange for 1.6 million shares, according to the SEC filing.

Instead, First Bitcoin will use the patent to make inroads among operators.

Rubin said the relationship will be mutually beneficial: First Bitcoin will charge a flat transaction fee comparable to ATM fees, and operators will meet local compliance and regulatory burdens via its network.

Rubin said small-time operators stand to gain the most from this globalized network.