Dubai, the most populous city in the United Arab Emirates (UAE) known for its luxury shopping and ultramodern architecture, has just received its first Bitcoin ATM, enabling both locals and tourists to purchase the #1 cryptocurrency by market cap, Bitcoin (BTC).
The now-operational machine that accepts cash for BTC is located in the heart of Dubai’s Jumeirah Beach Residence at the Rixos Premium, a 5-star hotel in JBR.
This location is ripe with some of Dubai’s finest tourist attractions, such as the Dubai Eye, Dubai Marina Mall, and the Mall of the Emirates. Therefore, it’s possible that we’ll begin to see more of these ATMs popping up in popular areas such as these.
We have installed a Bitcoin ATM in Dubai at the Rixos Premium Hotel in JBR, Marina. Located on the Mezzanine (M) Floor.
— Amhora (@amhora_com) March 19, 2019
Buy Bitcoin With No KYC Requirements and Low Fees
Not only is the fact that Dubai finally received its first Bitcoin ATM a big deal, but customers using the ATM are not required to provide know-your-customer (KYC) information when buying Bitcoin, according to a press release by the Khaleej Times.
According to Anhad Dhingra, CEO of Amhora – the company who owns the Bitcoin ATM – customers can remain anonymous while purchasing the cryptocurrency with cash, where all they must provide is a Bitcoin address to receive Bitcoin.
Customers are not yet able to sell their Bitcoin via the kiosk, but when this feature is implemented in the future (a couple of months or so), users will need to swipe their Emirates ID card or passport.
Buy Bitcoin at Just 5% Commission
As for the fees for buying Bitcoin from Amhora’s machine, the company is charging a 5% commission on the total purchase amount.
While this fee may seem rather steep to regular crypto users who use crypto exchanges that charge a fraction of this amount, it is actually moderate compared to the Bitcoin ATM industry average of around 7.5%.
Addressing the 5% commission rate while comparing it with traditional crypto exchanges and other methods of buying Bitcoin, the company’s CEO, Dhingra said:
“The commission is very attractive because you can buy bitcoins instantly. Otherwise, people have to go through a number of procedures which take a lot of time. At this kiosk, you just insert cash and you get bitcoins instantly. It is possible to purchase bitcoins through banking platforms and debit cards already but since we accept cash, it is very different.”
Have you ever bought Bitcoin from a cryptocurrency ATM? How do you feel about the 5% commission? Let us know in the comment section below.