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 (SEC) 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. He said the consortium will roll out this year.
First Bitcoin, based in Holon, Israel, 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.
Rubin insisted the patent is more than a legal bludgeon. He said he has no desire to become a patent troll, referring to those those who scoop up intellectual property rights and then sue infringers, often frivolously, seeking compensation and damages.
“We don’t want to send two big Italian guys with baseball bats” to enforce the patent, Rubin said.
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
“You cannot continue operating like you’re in the Stone Age with 10 machines,” he said. “We will be on top of the regulations, we will be on top of security. Your role is just to promote the business.”
The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.