 Welcome to Digital Asset News to get top stories in cryptocurrency digital assets and bring them down to bite-sized pieces. Today, we've got some fascinating articles. First, we're going to take a little rewind and talk again about the crypto exchange Kraken gets a Wyoming banking license. And there are some subtle nuances that we really need to go over because this, I think, is going to change a lot of people's minds. Also, on top of that bank story, US banks can hold reserves for stable coins, says the Office of the OCC. And finally, we're going to go into what I think is one of the biggest articles. Bitcoin ATM surpassed 10,100 worldwide, expert shares, industry outlook. And I have to believe that this might be a pretty good business opportunity. And I'll tell you why. Before I do that, let's get into the Sea of Red. It is September 22nd. It is Tuesday. It's about 1 p.m. Texas time. Let's see how far we've fallen. Bitcoin actually not too bad, 10.5. And it's up 0.1%, only one, only one and a half for the week. So not too bad. Ethereum still bouncing around 340. I can see 315, not too far away. Tether's Tether at 15 billion market cap, the exact same. XRP, 23 cents, watch out. Bitcoin Cash in that number five spot. I wonder what's going to happen with that hard fork because it's going to come up on the number 15th. Bitcoin Cash, the BCH crew versus the ABC and all the different miners that they might allocate 8% as a tax to them. So we'll see what happens. I think Bitcoin Cash will come out on that one. But who knows? So if you're holding Bitcoin Cash, be prepared. You might have a little fork action. Polkadot, number six spot, up 1.2%, but only $4. Finance coin, wow. Making a little surge at seven. And Chain Link, 883. What are you going to do? Keep going down. Cardano's up a little bit. That's not too bad. Let's see. Monero of 5%, that's weird. Maybe there is some kind of new announcement or something. I have no idea. Tezos, 7.8%, that's interesting. 10.6, you're in finance, 25,000. I think you're in as a good project. I just don't want to go on a DeFi. I mean, if anything's unstable, it is DeFi right now. And I'll just sit in the sideline, see what happens and go from there. Where is, here it is, Uniswap. Looks like it's down 5% for the 24 hours at 424, not too bad. So if you're holding Uniswap, hey, you could have sold out at $8, but it's hard time to top. All right, that's what's going on in the market. Let's get into today's big stories. So today I want to do something different. I want to rewind and go back to an article that we had talked about previously, about a week or so ago. And this was about the Kraken exchange getting a Wyoming banking license. And we had talked about how this was going to be big. There's some subtle nuances I wanted to go over. After I talked to my wife, she was the one that spurred this whole thing on. So what's happening? Just to recap, the crypto exchange Kraken last week obtained a special purpose depository institution license from Wyoming to become the first license bank to provide deposit taking custody and fiduciary services for digital assets. Right? Bitcoin, Ethereum, all that good stuff. Fantastic. And Kraken did a pretty smart thing in 2015. They said, Hey, New York, we're out of here because you're bit licensed. I got to jump through too many hoops to do it. So I'm out. And they didn't need them. Kraken will maintain its headquarters in San Francisco, but a subsidiary Kraken financial will be based in Cheyenne and act as a bridge between digital assets and fiat currency, which is fantastic. That is the whole crux. That is the whole excitement. They're going to have that little exchange right there where you can put your money into business and put their money into. You can put your money into it and you can do anything you want to. You can buy cryptocurrency. You can sell cryptocurrency. You can actually use cryptocurrency to buy things on your debit card. I hope it'll come out later, but it's going to be a great thing. But here's where it gets good. Deposits will not be insured by the Federal Deposit Insurance Corp or FDIC. Why is that good? It's good because because they're not going to ensure them, Kraken will be required to maintain 100% reserves against all deposits. I'm going to get into that and cue the day in a bit. However, the FDIC typically only insures up to 250,000. So if Kraken has a bunch of big players in the game, 250,000 gets eaten up pretty quickly, so it doesn't matter. Kraken will only offer accounts to US residents, but the exchange plans to expand to a global clientele. And I got to tell you, I got to tell you, I got to tell you, if they open up globally, how far away do you think they are for an IPO? Just a question. How far away do you think Kraken is before an IPO? I think it's right around the corner. Anyhow, it would offer digital asset custody, demand deposit accounts and wire transfer and funding services in its first year. But plans to sweep up mobile and online banking products, debit card on the function. So great. So what I want to do is I want to jump in. I want to start with with cue of the day because there's just some questions that my wife asked me, which I think there may be other people out there that have the same questions that I think should be answered now, because this really is a bigger deal than what I had originally thought when I did my research. Let's let's jump right in. Hello, everybody. Welcome back to the office. So cue of the day, like the article we're just going over came from my wife today, we were sitting on the patio, just having a quick lunch and she had just, we're talking about crypto currency assets. Actually, I was talking and she was listening, which is usually how it works out because I'm talking nonstop about this, as I'm sure maybe somebody like yourself might be doing the same thing to your friends and family, where you're just talking like, would you please stop? But so we're talking about the different things that are going on in this space. And one of the things that I talked about was, hey, there's going to be a new, there's a banking license that has been given to a pretty large exchange called Kraken to be based out of Wyoming, the thing we just talked about. And she goes, who cares? She's like, so I mean, why is that a big deal? There's a new bank opening around the street. And, you know, that's not really a big thing that you're talking about. And there's banks that open up all the time. So what's different between this one? And I thought about it go, you know, that is one of the problems that I see with this, with this channel's new people come in is that they don't, they're not really well, well versed in how everything works out in the, in the financial world. And I have to be honest with you, when I started this channel, I was the exact same way, because I was just like, a bank is just there for me to deposit my money so I can get it out and I can pay my debtors and my employees and everybody else that I need to for my business. I don't really care. I'll jump through the hoops because I don't have time to deal with this stuff. However, as time has gone on, I'm like, gosh, I really got to do some more things here because these banks are just screaming over, left and right. And that's the thing. Banks are, I mean, look, the people that work in the banks, some of them, you know, are great. That's just it. Like I've had people in the comments section like, hey, I work at a bank, I'm not a bad person. I get it, right? But they're just the upper echelon and some people in the banks, just like everywhere else that you go, there's just bad people out there. And those are the people that are responsible for those trillions of dollars that they just got busted for, for laundering money to the cartels and the murderers and, you know, drug trafficking and things like that. So, yeah, those are bad people. But when we're talking about the actual, you know, banking license and what this means, banks make a lot of money off you and me. One great way that they've done this for a long time, which is fractional reserve lending, right? So I'll put a hundred bucks in the bank and they'll say, thanks, Rob. And they'll say, Jim, come on in. Here's a hundred bucks and it'll just keep going on and on and on because that's exactly what fractional reserve lending is. They just kind of just give away your money. They lend it out at a percentage. So really, they're doing absolutely nothing. They're just kind of sitting back, going, thanks. If one percent of us, maybe five percent, I don't know the exact number, went to all of our banks right now, like just let's just say five percent of the people in the United States, five percent of people went to the banks. I want my money right now. There's no way they could do it because they have created so much debt. They've created so much lending that they just can't get all that money back because it is just based on a digital ledger and a centralized ledger somewhere in their bank. And that is one of the problems. So when we see that this new banking license comes into play, Crackin can't do that. Crackin, it is the reserve bank has said specifically you must have a hundred percent of reserves in your bank. So if someone deposits one Bitcoin, you can't lend out that one Bitcoin like a Wells Fargo can, like a JP Morgan can lend out fiat money. You just can't do that. We're not we're not going to allow that. We're going to allow you to have your banking license, but we're not going to allow you to do this specific part, which makes the other banks a ton of money because we're just not going to allow it, which is the most fantastic thing ever, right? Because that was one of the things people were saying, well, if they do that, then we'll just have a bunch of, you know, paper, Bitcoin, and it'll become worthless. Well, that can't happen. So I think with this, it becomes a more transparent, a just much better banking system. And I can see this paying dividends way down the line. Now, another question that my wife had was, well, how are they going to make money? Because if banks, that's all they do is lend, well, how does that actually work for them actually making money? So it's the same type of thing, right? I mean, they're still going to get paid for their transaction fees, just like they are on Kraken, the regular exchange that you go to right now, which I got to tell you, I just updated the my exchange and wallet spreadsheet, which is all the ones that I've ever gone through and actually use and recommend. If you're looking for just a recommendation, there is a link in the description of every one of my videos. It looks exactly like this. And when you click on that, it goes over all the different exchanges and wallets I have, recommend them, all this, all the fee structures and everything else. Also, there's affiliate links. If you use them, you can get between ten and twenty five dollars if you sign up for whichever one that you want to. Not all of them, they all vary. You don't have to use the affiliate links. You can go right to Kraken or right to Coinbase or right to Voyager. But if you use the links, it gives you a little bit, so it's up to you. Kraken is going to be able to do the number one thing that we all want it to do, which is to store and custody our cryptocurrency to be able to spend and use our cryptocurrency or our fiat and just make it a nice blended experience. So another thing that I was thinking about, you know, like to pay employees, you know, you don't have to pay employees now in fiat. If you guys want to get paid in Bitcoin or in Ethereum or Litecoin or whatever it is, because we are banking with Kraken, you can do that and I can pay you. No big deal. And another big thing is that some of these places, you know, they can't use banks because of their you know, because they are working in cryptocurrency. So now they can actually have a bank that they can actually bank with. It's the same thing in the marijuana industry, marijuana industry. They can't use banks. They have to store everything cash heavy. So that's a dangerous situation for anybody in that. So I will say that I think what is going to happen is that this is the first step to really changing the whole banking structure. And if we look at all the different things that are coming in place, I mean, who would have ever thought that the Federal Reserve would give a banking license to an exchange and they will let them custody different cryptocurrencies. They wouldn't allow them to lend them out. They had to have 100 percent reserves and it was it was going to be super transparent and all the different things that were happening before all the different Wells Fargo scandals, you know, money laundering stand we just talked about, those can not completely go away because we'll never get away. I mean, we'll never get rid of everything, right? But we can make it so transparent that these types of things just are going to be a fade of memory. Hopefully. Now, hopefully I'm not giving off too much hope, but I got to tell you, I got to tell you, I think it is. I think it is one of those big steps in the right direction. I think it could be a catalyst. And another big thing is so we have this over here and then we have the other story about micro strategy where the CEO Michael Saylor said, hey, we've got half a billion dollars and that money is on fire because the Federal Reserve keeps printing money and the dollar, the value just drops and drops and drops. So we're just sitting there and we should just be throwing this money out of the toilet. Where do we put it or we're going to put it into the best performing asset in the last decade, which is Bitcoin. So if you have something like that and businesses are like, well, I got a lot of money, but I don't really understand these exchanges. I don't really understand about using an analyzer and I'm going to put half a billion dollars in my analyzer. Oh, now there's a place called Kraken and I can put all my money into it and then I can, you know, invest into Bitcoin and then it'll probably, well, not probably, but it will it will go up as far as an asset. I like the sound of that. And last thing I will say is that my wife's did say this. She goes, you know what? Will they really do that? Because I mean, I just she said, I just looked at Bitcoin today. It's a 10,400. Wasn't 11,000 not too long ago. I'm like, yes, that is true. However, do you remember what it was in March? It was like four thousand dollars. So people are cautious, but they will also see a great value. They also see where the tide is moving to just like Michael sailor with Michael strategy, just like the Dell Agile assets, just like Paul Tudor Jones, just like all the rest of the big institutional players are seeing it. So this could be a big thing. It could be a catalyst. I believe twenty twenty one is a good year. I'm going to think in the comments section below. And that's it. Let's let's jump back next up. Bitcoin. Atm surpassed 10,000 worldwide expert shares industry outlook. When I first read this article, I thought to myself, this is a fantastic business opportunity. But when you get into the weeds of it, you realize that no, not so much. So what's going on here? So first up, the number of cryptocurrency ATMs has grown significantly, surpassing 10,000 last week. And this is all about perpetual motion. When you first gain traction, it takes a lot of work. But in business, once you gain that traction at a foothold, you just start to take off exponentially. And in this industry, it took roughly seven years to reach the point where they installed ATM or Bitcoin, ATMs. And after the first three and a half years, they got a thousand active Bitcoin, ATMs. Not too bad. But the three years after that, they got 9000 ATMs. So a 9x increase. So again, first year, a lot of work, our first three years, a lot of work, I only got a thousand ATMs. The next three years, 9000 ATMs. And that's how pretty much all businesses go. It just takes a lot of work to get things going. But once it does, it just takes off like a rocket. Coinflip CEO, Daniel Polotsky, has shared some insights into the Bitcoin ATM industry. He states with 10,000 machines placed globally. Bitcoin ATMs have been the go-to service for those participating in cash to crypto and also for unbanked and underbanked. So if you cannot use a bank for whatever reason, either through geographical location, either through legal process or even or even through whatever issue that you have, there is a definitely a niche market or just a market for people in this sector who need to buy Bitcoin and they can do it cash ways through a Bitcoin ATM. He states his company is installing between 30 and 50 Bitcoin ATMs per week and they're on track to have 3,000 by the end of the year. Again, exponential growth. Here's what that looks like. That looks like they're doing the right thing. So there's two types here. Genesis Coin tops the list of Bitcoin ATM manufacturers with 3,500 followed by General Bytes and BitAxis, blah, blah. So these are people that make the actual ATMs. Then you have the operators and they're the ones that buy up all these ATMs and they do all the hard work, they do the installation, they do the reporting, they do all the registration, all that stuff. And the top 10 run about half of them, but there's other ones down the line. So you got CoinCloud, CoinFlip, Bitcoin of America, pretty good, Bitcoin of America, BitStop, Digital Mint, and so on and so forth. So I think it's a great business, but here's where it gets interesting. Bitcoin ATMs have gained an edge over the competition within specific demographics due to the unwraps speed and ease of use. Customers don't need to be tech savvy to locate a machine, call a support rep, get the transaction requirements. So yeah, there's a lot of people that don't really understand it. Coinbase, Kraken, Voyager, like I don't get it, but everybody's using ATM and it's a heck of a lot easier. Now the problem with Bitcoin ATMs is that the transaction cost is a little bit higher, but some people will definitely pay that for an increased ease of use and also increased privacy. Now, if you're gonna buy a lot of Bitcoin and ATM, I don't see why you'd be hauling around 10,000 bucks, but maybe you do, and you put that in there, they're gonna do a lot of KYC and AML type of stuff, and you're gonna have to register it if you are one of those people who are purchasing. And also it's a headache if you want to own one of these machines. So let's get into it. So first of all, just like how I work with Amazon, there are manufacturers and distributors. I call them, I say, hey, I wanna purchase whatever, how many units of whatever product they have. Sure, we'll give it to you. They ship it in, I buy everything, I take care of a lot of different aspects, and I sell it for a little bit of an increased price. Same thing here, you've got manufacturers who are making it an operator. So if you wanna buy an ATM machine, not too tough, just look for Genesis Coin, Genesis Coin cryptocurrency, and the first thing that'll pop up will be this website, bitcoinatm.com. And you can just look through it right now and you can say, well, how much is it? Well, it's about 14.5 for one of these big guys, 73.80 for a slim down model and only 4500 for a wall mounted unit. So you're like, great, I can do that. But here's where it gets, where you have to really start to think about the little minutia details. So the first thing I saw, which was interesting was, they asked the question, what's your knowledge of the regulatory landscape governing Bitcoin kiosks? Interesting question. Well, I would consider myself a novice. I have not considered the regulatory requirements. Advances, I am aware of the regulatory implications. Or a pro is I have experiencing running a money service business or MSB or other regulated business. That's if you're a pro, sure. Another thing you gotta think about is this. Do you have a FinCEN, FinSEN, BSA ID number or a Banking Secrecy Act ID number? What the heck is that? Well, there's a great website. It's called atmmarketplace.com and it breaks down what all that stuff is. So FinSEN or the Financial Crimes Enforcement Network considers a Bitcoin ATM operator to be a money service business. And all money service businesses have to register with the Financial Crimes Enforcement Network. This is easy, takes about 45 minutes and off you go. But once you register, you're obligated to comply with BSA. Among other things, you gotta have a Bitcoin ATM operator to establish an Anti-Money Laundering Compliance Program which is a written document that explains your overall plan to thwart money laundering. So you can do that. All you gotta do is get a lawyer who's very well versed in all those things and they can write things off for you. Again, only takes money, but it's really about who you know. As part of your AML Compliance Program, you need to appoint a dedicated AML Compliance Officer. That's the person that's gonna write up all these things and pretty much be responsible for everything you have to do with any money laundering act. Again, that could be anybody you want to, but they have to be well versed into it. You also have to maintain a superior reporting and record keeping capabilities to ensure you're collecting the appropriate information for all transactions. And lastly, or next to last, in terms of reporting, BSA requires you to monitor customer files. So anybody who spends over $10,000, you have to put in a transaction report. You also need to file a suspicious activity report for any transactions that might signify money laundering, tax evasion, or other criminal activities, which is kind of funny because, you know, J.P. Morgan didn't do it, Deutsche Bank didn't do it, because they just got busted for money laundering, but you little guy have to do it. That's hilarious, but that's how it works. Typically, a Bitcoin ATM operator will work with an outside consultant or a lawyer to create the Compliance Program. You'll begin a contract with vendors who can provide the necessary services to comply with these, such as collecting information to rent the whole fact list. So again, all this stuff can be done. You know, all these things can be done. It's all about, do you want to go through that hoopla? Now, I think it's a tremendous time to be in this space. I see a lot of different things popping off. If you've been around the channel, you know that I am pretty bullish on the whole space, but I think it's all coming together right now. I will put this in the description. I personally will not be doing this, but I think it's a great business opportunity for somebody out there who wants to take the bull by the horns. All right, thanks for listening through the end. I really appreciate that. If you like these types of videos, two more is gonna pop on your left and right. Not sure, because YouTube controls all that, and that is it for today. So thanks for watching, and I'll see you on the next one.