New Zealand bitcoin ATM owner shuts down amid problems with banks

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Last updated on October 13th, 2017 at 06:17 pm

All over the world, avid bitcoin entrepreneurs are launching bitcoin ATMs. From Canada to the United States, from Singapore to Austria, bitcon ATMs are cropping up in every part of the globe. However, some bitcoin machine operators are coming across problems, not only from governments but also financial institutions.

Case in point, Bitcoin Central, a New Zealand-based bitcoin ATM provider, published a statement on its website announcing that the company is closing down and will be selling its machinery to interested individuals.

Citing issues with the nation’s banking system, it appears that the firm has had troubles finding and securing a reliable banking partner, a common concern now found with both established and up and coming bitcoin businesses.

Here is the exact statement from the company:

“Unfortunately, despite complying with all the legal requirements we have been unable to secure banking facilities. Without these the Bitcoin ATM business cannot operate long term. The negativity from the banking sector to Bitcoin also threatens the ATM owner’s other businesses. For me it is prudent to shut the ATM down. If you have any interest in purchasing a second-hand bitcoin ATM with compliance documents. Please get in touch.”

Bitcoin Central only maintained on bitcoin ATM that was launched at the beginning of last month in Auckland. The machine was produced by Robocoin, a Las Vegas, Nevada-based bitcoin ATM producer. Bitcoin Central contends that has already registered as a Financial Services Provider in order to ensure that it meets the laws implemented by the New Zealand government.

The New Zealand Herald reported that sources within the nation’s bitcoin community have suffered from the same problems: banks shutting down client accounts that have dealings with the cryptocurrency industry. One source told the news outlet that one local bitcoin startup actually had their bank account shut down almost immediately.

In Canada, for instance, the Bank of Montreal closed bitcoin-related business accounts. Canadian banks are reacting to the government and central bank’s warning that virtual currencies may very well pose a threat to the financial sector across the Great White North. Central banks worldwide have pretty much iterated the same thoughts.

Nevertheless, bitcoiners in New Zealand are still optimistic about bitcoin’s growth potential. The Nomad published an article entitled “Bitcoin’s Potential in New Zealand,” in which it discussed the state of bitcoin in the country.

“Overall, the growth of the Bitcoin industry in New Zealand is promising, and if more merchants start to offer Bitcoin as a payment option and exchanges/startups … try harder to provide easy-to-use services to the general population of New Zealand, New Zealand will have a successful Bitcoin economy by the end of this year.”

Bitcoin remain a contentious issue for the governments of New Zealand and its neighboring Australia.

Coinbuzz

CoinBuzz provides news and analysis on Bitcoin and other digital currencies. Founded in 2014, the site has quickly become a leading source of information on digital currency technologies, businesses, markets, and regulation.
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