Joesmoe Show #3 - Nevada requires ATM licensure, Taxation and Bitcoin ATMs

## Joesmoe Show #3: Nevada Regulations, Bitcoin Taxes, and ATM Growth - A Summary

This episode of the Joesmoe Show dives into the evolving landscape of Bitcoin adoption and the challenges faced by those operating within it. The discussion ranges from the immediate impact of new regulations in Nevada to the ongoing headache of Bitcoin taxation and the surprising growth of Bitcoin ATMs worldwide. The hosts, Emilio and Jeff, share personal experiences and frustrations, highlighting the complexities of navigating a rapidly changing regulatory environment and the difficulties of accurately tracking Bitcoin transactions for tax purposes. Despite these hurdles, they remain optimistic about the potential of Bitcoin and its increasing accessibility through innovative solutions like Bitcoin ATMs.

1. Narrative Summary:

The podcast began with a frustrating update: Nevada is requiring Bitcoin ATM operators to obtain money transmitter licenses, a move that threatens their presence in the state due to the high costs and complexities involved. This situation echoes previous experiences in Vermont, where similar regulations forced the removal of ATMs. The hosts were also grappling with a lengthy and confusing notice from the IRS regarding Bitcoin taxation, leading to concerns about potential high accounting fees and the difficulty of reconstructing past transactions, especially given the demise of some early exchanges. However, the conversation shifted to a more positive note with a discussion of CoinATM Radar, a website tracking Bitcoin ATM locations, which revealed a dramatic increase in the number of Bitcoin ATMs globally, fueled by the inclusion of various payment terminals and services. This growth, particularly with CoinStar ATMs, is making Bitcoin more accessible, though it comes with its own set of KYC/AML requirements and fee structures. The hosts emphasized the convenience of these ATMs and their role in driving broader Bitcoin adoption, even sharing personal anecdotes of their usefulness.

2. Main Topics Discussed:

• Nevada ATM Licensing: New regulations requiring Bitcoin ATM operators to obtain money transmitter licenses.
• IRS Tax Notices: Receiving complex notices from the IRS regarding Bitcoin taxation and the challenges of record keeping.
• Vermont Regulatory Experience: Past experiences with restrictive licensing requirements.
• CoinATM Radar: Tracking Bitcoin ATM locations and the growth of Bitcoin ATM infrastructure.
• CoinStar ATMs: The rise in popularity of CoinStar ATMs offering Bitcoin functionality, their fee structure, and KYC/AML requirements.
• Bitcoin ATM Growth: Significant increase in the number of Bitcoin ATMs globally (from ~5,000 to over 40,000).
• Competition in the ATM Space: The impact of CoinATM Radar and the inclusion of various terminals on traditional ATM operators.

3. Key Quotes:

• "It's hurting the consumer more than anyone else because they're the ones that aren't going to have access to these ATMs." - Emilio, on the impact of regulations.
• "Am I supposed to go back and figure out every time that I made a Bitcoin purchase...and then calculate my profit through there?" - Host, expressing frustration about Bitcoin tax calculations.
• "I don't even know how to begin, you know, it's just a, I, the websites don't load, the people don't exist anymore, it's just going to be an absolute nightmare." - Host, describing the difficulties of tracking Bitcoin transactions.

4. People Mentioned:

• Jeff (Host)
• Emilio (Host)
• Julie Havenhold (Nevada Financial Institutions Division)
• Michael (Emilio)
• Mom (of one of the hosts)
• Andy (Recipient of Bitcoin remittances)
• Melia
• Vlad (Donor of CoinATM Radar)
• Wife (Japanese, uses a Japanese exchange)

5. Bitcoin Prices Mentioned:

• $10
• $50
• $5 (price of a beer purchased with Bitcoin)
• $150 (price of a hotel room purchased with Bitcoin)
• $250 (daily withdrawal limit from "Can't Be X")