The transaction process
The BTMs save Know Your Customer (KYC)/Anti Money Laundering (AMC) details, scrutinise them and report suspicious activity to the regulatory authority. After obtaining these details, the machines allow you to buy Bitcoin. The operators buy Bitcoin from exchanges and allow BTM users to withdraw Bitcoin from their wallets. One can buy as much Bitcoin as the operator holds.
Operating a BTM
In most jurisdictions, operating a BTM is a challenging task. BTM operators have to meet stringent regulatory norms. In the United States, operators have to register under the federal financial crimes enforcement network as well as obtain state-specific money transmitter licence.