Bitcoin ATMs in Madrid (Spain) have new KYC limits since today

The fast rise of Bitcoin ATMs in Spain

Bitcoin ATMs in Spain are very popular and offer a lot of possibilities for crypto investors. They also provide a physical device with which the public can interact with to receive almost instant payouts or purchases, which has made them more popular over time, as well as being a kind of beacon for the crypto world to promote their new technology.

Before we talk about the change in the verification process at Bitcoin ATMs, let’s first learn what is KYC in general:

What is KYC in crypto?

Know Your Customer, often referred to as KYC, is nothing more than an identification and due diligence process used by banks, financial intermediaries or cryptocurrency businesses to certify that registered users are natural persons or not. It requires the client to identify themselves using a personal document among other things. This kind of procedure rightfully stops crime activity such as: tax avoidance, money laundering or financing terrorism. Thanks to the regulations, many criminal activities have been prevented. However, everyone agrees that transactions below 1000 EUR do not pose such a risk, and verifying customers each time they want to make a small ~500 EUR every few months. It is very problematic for customers, who must wait for the successful verification, and for financial insitutions that

New AML limits at some Bitcoin ATMs

The second largest Bitcoin ATM operator in Spain, ShitcoinsClub, has recently decided to raise their limits for checking customers’ I.D. documents in transactions up to 1,000 euros. This will be good news for customers who do not wish to register or to present IDs when making smaller transactions and will significantly cut down the time of completing their purchases or sales. For those who regularly use Bitcoin ATMs, this will surely come as a positive news, as now conducting translations.

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Reasons for the change in policy

This decision was made by the management of Shitcoins.club after close consultation with the Spanish regulators as related in a special interview given to the Madrid Bitcoin ATM blog team with one of the media representatives for the Spanish Shitcoins.club branch, who told us:

“As a company we always put the customer first to make sure that their experience using our ATMs is smooth and overall a pleasant experience. One of our values is that we avoid unnecessary formalities such as entering your phone number, conecting Gmail account, connecting bank account, and we avoid remarketing cookies. We believe these things are against the spirit of the free, decentralized, uncommercialized Internet as we remember it from our younger years".

"Now, every step someone is trying to track, collect and then sell our data for marketing purposes. This is also why our company focuses on decentralized systems, which also represent the values of the Old Internet. And this is also one of reasons why our company name - ShitcoinsClub - is an inside joke that pokes fun at the corporate culture of today. Also, we believe the Bitcoin ATMs should be lightning fast. You should be able to buy or sell at the BTC ATM faster than at a bank ATM! And the verification process takes a while, as you must take out your ID and scan it both sides. It ruins our vision of Bitcoin ATMs being simply better in every way than bank ATMs. Call us crazy, but we do believe decentralized institutions sooner or later will replace most centralized institutions".

"However, we also aim to fully comply with the laws where we operate, as continuous functioning allows us to work on creative projects related to blockchain that passionate us. So after close consultation with the Spanish regulator, Sepblac, we are able to change our policy to allow customers to make faster transactions, while also staying within the bounds of the regulations. We feel this will make usings our ATMs much more convenient. After all, having to take out your ID and scan it each time you operate with a small amount can be quite time-consuming and frustrating”.

We have learned that the regulator citied the following legal basis enabling the change:

The legal basis for 1,000 Euros KYC verification at Bitcoin ATMs in Madrid

In the article 4, paragraph. 1 of Regulation 10/2010, the following is indicated:

“Article 4. Formal identification:

1. Obliged entities will identify and verify, on the basis of reliable documents, the identity of as many natural or legal persons as possible intending to establish business relations or participate in any occasional operations, the amount of which is equal to or greater than EUR 1,000 (...)”

What document is required to use a Bitcoin ATM over the KYC limit of EUR 1,000 in Spain?

To complete the KYC process at a Bitcoin ATM in Spain, you need to provide one of the following real and valid IDs:

1. Spanish DNI, NIE, or Resident Permit ID cards.
2. Passport.
   
   A driving licence is not a valid form of ID.

Are there actually any Bitcoin ATMs in Spain?

Spain is very high on the list of countries with the most ATMs.

Spain is already number one in Europe for Bitcoin ATMs with 269 locations, followed by Poland, and then Romania and Italy. It has already surpassed even El Salvador (212 locations).

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Regulations and Bitcoin ATMs

In Europe, as these companies are seeing new regulations being rapidly formed, often revolving around safety issues for the customers and the identification and reporting of suspicious transactions, the new emerging trend shows signs that customers will be more and more checked. It is unusual, then, that an operator decides to increase their KYC limits.

The Future and Locations of these ATMs

Hopefully, with time we will see Crypto ATMs receive a surge in popularity, and thus make it possible for the ordinary man-on-the-street to use it as much as maybe a bank ATMs. To see locations for Shitcoins.club ATMs in Madrid, click here. 

Okay, time now to summarize what we have learned, and also add some new information with this Commonly Asked Questions about Bitcoin ATMs in Spain and KYC:

When is customer identification mandatory at Bitcoin ATMs in Madrid?

In general, the obligation for the KYC process arises when the amount of a transaction exceeds the amount specified in the local law. In most cases, verification is required when the amount is greater than the threshold of 999.99 Euros (as it is for Spain).

How does a Bitcoin ATM work?

Bitcoin ATMs are similar to ordinary ATMs, with the difference that physical money is not withdrawn: it is virtual money instead, such as Bitcoin. Basically, BTC ATMs allow you to buy cryptocurrencies by paying cash, but some models also allow you to sell them. The ATMs mentioned in this article all work for both ways: buying and selling.

Why are Bitcoins untraceable?

Bitcoins, and all other cryptocurrencies, are by no means anonymous because each transaction is recorded in a sort of public diary called a "ledger", which anyone can consult. By its very nature, payments in Bitcoin are traceable (i.e. they still leave a trace of the transaction in the blockchain) but they are anonymous, so it is not possible to know who made the transaction and who received it.

How much cash can you withdraw in a month in 2022?

Judging by the questions that are asked on the internet, many are wondering how much you can withdraw, per month, from a Bitcoin ATM. There is no such limit in Spain.

Where can I buy cryptocurrencies without KYC?

ShitcoinsClub is an ATM operator that makes it possible to buy Bitcoin and other cryptocurrencies without identifying the user, as long as the transaction or group of transactions in a quick succession do not exceed 999.99 euros. Their services also support Litecoin (LTC) and Ethereum (ETH), and Tether (USDT).

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How to protect your Crypto in Madrid?

Use secure wallets and make backups of your passwords and seed words.

Having a cold wallet with backup is certainly one of the best solutions for keeping your cryptocurrencies. This is because "cold" wallets record data offline and only go online when the user makes a transaction. By using these methods, you can still use Bitcoin ATMs in Madrid. The most popular cold wallets are made by the companies Ledger and Trezor

When is KYC verification done in Madrid?

KYC is mandatory for occasional service with a transfer equal to or more than €1,000, but also when there is a suspicion of money laundering, terrorist financing, or there are doubts regarding the real identity of the customer.

How to do KYC in Spain, Madrid?

The KYC requires financial service providers to collect information about the identity of their customers. This could be done, for example, through official identification or bank statements. In the case of Bitcoin ATMs, it is showing a valid and real proof of identity such as a national ID card or passport.

Where to find out about cryptocurrencies and the tokens which are on offer?

There are literally thousands of cryptocurrencies today, making it difficult for many to navigate this new digital world. To overcome this problem, it is possible to get information from sites such as cajero-bitcoin-madrid.com in order to acquire independent information on the subject and stay updated.

How much money can you keep at home?

There is no limit on how much cash you can take with you or keep at home. Owning cash is not an offense, neither penal nor administrative. Nobody can violate the domicile address without a warrant signed by a judge.

Why according to crypto enthusiasts you shouldn't you keep money in your bank account?

Inflation, i.e. the increase in the prices of the products we consume every day, lowers the real value of the savings deposited in the current account. This means that by holding a fixed amount of money, you will be able to enjoy fewer products and services in the future than you do today.

How to enable cardless withdrawals?

Transactions at Bitcoin ATMs mentioned here do not require credit or debit cards, just cash.

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How much can you withdraw from the Crypto ATM without being reported?

As long as you are not making any suspicious transactions you should be okay. 

How much can you withdraw from Bitcoin ATMs in 2022?

The cash limit in Spain is 1,000 euros without ID which includes withdrawals and deposits of

crypto at a Bitcoin ATM. Any amount exceeding 1,000 euros is only processed after KYC identification by the customer.

How do I withdraw Bitcoin money?

To do this you must select the sell Bitcoin option. Then select the amount of euros you wish to withdraw. You can then select a QR code which will appear on the screen, and the amount of BTC you need to send to that QR address wallet. You must transfer this amount of BTC to that address from one of your personal wallets, and then wait for the transaction to be realized, and for the cash to appear at the ATM. It's that simple.

Who Controls Bitcoins?

No-one it was designed to be decentralized and transparent. the only information not easy to obtain is the identity of the owner of a Bitcoin wallet, otherwise it is easy to check amounts e.g. how much Bitcoin was moved on a particular day.

How to pay in Bitcoin in Madrid, Spain without any documents?

By using Bitcoin ATMs and keeping your transaction under the KYC limit of 1000 EUR. Keep in mind, even the slightest suspicion of using an ATM to avoid taxes, or launder money, is immediately reported by all Bitcoin ATM operators in the world.

How to buy Bitcoin in Spain at the shopping centre?

Unlike other countries, buying Bitcoin in Spain is sometimes possible in shopping centres. The Government has not yet extended the purchase of cryptocurrencies by using more accessible channels, but it is possible to do so by using a Crypto ATM at some shopping centres.

How to buy Bitcoin without a credit card?

You can do it by bank transfer, practically on almost all exchanges. Alternatively, on LocalBitcoins there are also other payment methods (in this case, the commission rates are higher). This is why, usually Bitcoin ATMs are recommended.