Topic: DIY Bitcoin ATM (Read 213 times)

Thanks for the advice, mate. I was not aware of that! I've thought that KYC/AML and registering as a money business only applied to Fiat only transactions (like an ATM which only accepts USD for deposits/withdrawals). But, if the same thing applies to crypto/fiat transactions, then I have no problem with that at all. In the meantime, I'll only build it for educational purposes to facilitate very small fiat-to-crypto transactions at home.

When I decide to move it to my friend's small business, then we'll look deeply into working as an agent of an MSB. For the outside world, the ATM would need to have proper security like you've said earlier. Otherwise, it'll be easy for thieves to steal money from the ATM.

All of this is very interesting and could really help boost Bitcoin adoption within my region. Once again, thanks for everything franky!



I highly appreciate your advice, mate. And yes, I'm aware of my region’s KYC/AML laws. It's just that I didn't knew that it applied to fiat-to-crypto transactions, especially in an ATM. Luckily, I won't be operating the ATM outside yet, as it would fit its purpose to educate others about the awesomeness of blockchain technology. It would be safe in my home, until I decide to transfer the ATM to my friend's small business.

By then, registering as a money service business is a must to comply with all state laws. In the meantime, this will be a fun and exciting project to build.

I think that it is practically impossible for individuals to do so, as in any case, permission from the authorities is needed

This is the beauty of the decentralized world of cryptocurrency where you are your own central bank. But of what use then will it be if everyone has his own ATM machine?

Creating your own bitcoin ATM machine is very difficult to build because you need to hire professionals who really build a ATM machine. I can't any parts of ATM machine I do not have any idea how to build a ATM machine I only know how to use it but I do not how to build it. I hope you can build your own bitcoin ATM machine.

what country are you in? make sure you are apprised of the AML/KYC laws in your locality. there may be registration or licensing requirements. in the USA, the requirements are quite burdensome but in other places it might not be too bad.

just throwing that out there since this seems to go beyond educational purposes. last month, the developers of india's first bitcoin ATM were arrested and criminally charged: https://cointelegraph.com/news/innovation-behind-bars-the-arrest-of-indias-first-bitcoin-atm-operators

Bitcoin ATM must operate through some kind of exchange and be connected to the server.

A good solution can be found in Russia. Connect ATM to webmoney service.

Checklist to create a bitcoin ATM machine.
- Android tablet/iPad or similar kind of device
- A camera to take photo (Identification needed because we are living in a centralised age)
- Internet connection
- A cash drawer (automated, which will be embed with your software)
- POS printer
- Some cables

You may require more equipment depending on the real time experience 

Once you have all these equipment then hire a group of skilled people who can build you a software. Then embed and assemble the hardware to create you a brand new Bitcoin ATM.

PS: I would not mind a sample to be one of the early adopter of your ATM.

Good advice but I would also be carefull with the laws of your region. Handling fiat currency will require you to have registered business and pay taxes on profit.
But as franky1 says If you are not carefull enough you might endup empty handed. People are willing to blow up ATMs from banks which have good security and are protected by laws (you will get long sentence for screwing with bank). While having a private ATM is a trouble seeker if you don't know what are you doing.

be careful here. because you will be handling fiat outside of your home..
inside of your home "hobby" (non public use) your fine with family and friends. doing small justifiable amounts privately in your own home.

but as soon as you put it out in public. KYC/AML.. and registering as a money business and security of the ATM become costly
EG MSB licences and insurances are not cheap
EG you need a safe/lockbox in the ATM thats going to keep the bank notes safe if someone put a hammer to it
EG you need to bolt it to the small business premises floor and make it not easy to pick up and leave your friends premises

this is why people ended up just working as an "agent" of a MSB and leasing a BTM. rather than having to become an MSB yourself

Well, in my house, I often receive guests, so they might use the Bitcoin ATM someday.   Things aside, it would be a nice project/hobby to do since I would learn how an ATM works when converting from USD to BTC or viceversa. I'm just going to buy the needed parts slowly until I have them all to build the ATM. Speaking of not letting the computer storing the keys, I've thought about this in the first place since it would pose a serious security risk. A Raspberry Pi that would only handle API requests would be better for this purpose.

Nonetheless, I highly appreciate your help with this. The article you gave me, has everything I need to get started. Eventually, the Bitcoin ATM would be moved from my place to a small business one of my friends own, to help Bitcoin reach mainstream adoption within my region. 

if for your own playing around you wont need it to have a secure 'safe' for the bank notes. i presume you would only store bank notes in it while you play. thus you can manually manage that risk of the ATM full of bank notes being taken out your house

you would need a bank note feeder/note counter(to make sure it doesnt spit out too many bank notes) and makes sure it doesnt accept crayon drawn(forged) bank notes

big tip. dont let the computer/controller board. be an actual wallet containing keys.
instead let it just be a API sender/receiver to a remote system that does the actual coin handling
this will mean you can get away with using a raspberry pi because you wont be doing full blockchain checks in the ATM. you will just be API calling in and out data

as for making one. google has the answers.. and here is one
https://openbitcoinatm.wordpress.com/tutorial/

Is it possible to make your own Bitcoin ATM? If so, what parts do I need to make this a reality? I'm deeply interested on having a Bitcoin ATM of my own just for fun and educational purposes.

The ATM would quickly exchange USD to Bitcoin or another crypto without the need for an online exchange. I’ve once saw an ATM for Franko cryptocurrency, but that was a long time ago and I can't seem to find the article about it. An open source software would be ideal and using a Raspberry Pi for building my own Bitcoin ATM might do the trick. However, I'm not very friendly with electronics or soldering, so I would either need a guide on how to do it or buy a Bitcoin ATM that's been pre-built.

Any help with this?