Is a Bitcoin ATM Without Custody Even Possible?

I was thinking about whether a Bitcoin ATM could exist without needing someone to hold your coins. If ATMs aren’t custodial, does that mean we could skip KYC? Seems unlikely.

Honestly, I doubt they could ditch KYC entirely. Regulations from FinCEN in the US or MiCA in the EU would still apply, even if the ATM's role is limited.

Sure, it could happen. But ATMs without KYC sound super risky. How do you deal with credit cards or digital funds? It's a recipe for chargebacks and theft.

I don’t see how the ATM company profits from this setup. If they’re taking cash from sellers, they’d lose money unless they charge fees. Plus, tax implications are tricky.

From what I know, needing ID at an ATM is more about anti-money laundering rules, not custodianship. ATMs don’t hold your funds, right?

Good points! I imagined a setup where cash is checked for counterfeits, and BTC transactions could be instant if you acted as a buyer for an existing order. But the regulatory stuff might still apply.

Your last point got cut off. But yeah, with P2P, it’s tough to have instant transactions since you’re dealing with real people on the other side.

Exactly! Even if you’re the buyer, the seller needs to confirm receipt before anything happens. It’s all on-chain, so there’s no way it’s instantaneous.

You got a point. It'd take time unless sellers could signal they’re available and agree to quick confirmations. That could work.

Implementing that would be tricky, though. Many ATMs are locked behind doors, making it feel like a prison. What if buyers and sellers met in a secure area?

I think there are simpler options. I’ve seen ATMs where you get a QR code to send a transaction from home, then just withdraw cash once it’s confirmed. Way easier.

What about an ATM that asks users to send BTC to a specific address, then sells it at a lower rate? No P2P involved, and it could avoid KYC.

But you still have to visit the ATM physically, and there’s usually limits on transactions. KYC could be requested anytime.

Hypothetically speaking, it’s impossible in the EU now. KYC is mandatory for all transactions, and setting up a physical machine involves costs and regulations.

+1, they’ll still want your phone number or something. Temporary numbers won’t cut it.

In Poland, I bought BTC without much hassle, but it’s risky. Locking someone in a room while transacting? That’s a recipe for disaster.

Governments won’t allow these ATMs to operate without oversight. They’re worried about crypto being used in crimes, so they’ll enforce regulations.

If you have to show ID, risks of data leaks make people hesitant to transact. I’d prefer to let someone else handle my ID.

Great idea! A cash-only locker system with P2P is creative to avoid custodianship. But it’s complicated, and people still have to trust the company.

Interesting concept, but I’d want it more automated. Both parties meeting up complicates things. What if they could verify their identities without seeing each other?