Foley & Lardner LLP partner Patrick Daugherty assessed the growing popularity of crypto ATMs in the C-Store Dive article, “Navigating the pros and cons of crypto ATMs for convenience retailers.”
“It’s something the convenience store industry should care about because those are obvious locations for bitcoin ATM kiosks,” Daugherty explained, noting too the potential for the machines to be used in scams. “There are a lot of stories about customers basically emptying their wallets…to buy Bitcoin that they then send to someone that they think they know.”
He emphasized the need for individual retailers to weigh the benefits against potential drawbacks, suggesting a flat fee arrangement, rather than a payment option based on overall transaction volume, may offer greater security for retailers hosting crypto ATMs.
“If you do that, it’s easier for the government or a customer to argue that you’re part of the same team as the kiosk owner and operator, and you should be equally liable with it,” Daugherty continued, adding that retailers should “check the reputation and the past history of the company in question before leasing space to it.”
