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A previously announced business partnership between BitXatm and CryptVision that would have resulted in the launch of 1,000 bitcoin ATMs in the US has been dissolved.
Whilst the way has been paved for widespread mainstream use of virtual currencies due to the lack of quarrels between government departments, law enforcement agencies and Bitcoin proponents in North America, a new obstacle has surfaced this week which has put a stop to a potential 1,000 Bitcoin ATMs having been installed across the continent.
Other nations may have a Bitcoin fraternity whose ideology is aligned, but whose effectiveness is thwarted by government disdain for virtual currency, however America’s willing acceptance and recent advancement of virtual currency via venture capital investment, regulatory approval and technological development has led to one particular project falling by the wayside due to corporate disagreement.
On July 20 this year, a deal between Cryptovision and BitXatm granted CryptVision the rights to become sole concessionare of BitXatm bitcoin ATMs in the United States and Canada. Just two months ago, Californian firm CryptVision aimed to establish itself as one of the more prominent bitcoin ATM operators in North America, while German company BitXatm aimed to further its presence outside of Europe, making this a potentially global enterprise.
Despite the potential, BitXatm announced on September 8 on its blog that it intends to renounce the partnership with immediate effect, stating that CryptVision “never conducted any organized effort to secure new customers as stipulated by the agreement”. The blog post by BitXatm cited that “Refusal of CryptVision’s management to act in good faith and respect legal obligations arising from our partnership agreement left BitXatm with no choice but to terminate the collaboration and remove any right of representation from CryptVision.”
Speaking to CoinDesk today, CryptVision president Sergey Yesayan was equally critical of the actions of his company’s former partner. “We have been deeply disappointed with BitXatm’s behavior and its demonstrated unwillingness to deal ethically with CryptVision,” he said.
CryptVision confirmed to CoinDesk that it is still seeking to launch a fleet of bitcoin ATMs in North America, while BitXatm has pledged to announce further expansion plans in what it has called a key international market.
Whilst no legal action on either part is likely to take place, the project has been shelved indefinitely. Catalin Tincu, co-founder of BitXatm, told CoinDesk: “Our intention is to put behind this unfortunate event, to take care of our customers and prospects in US. We are not here to tarnish CryptVision reputation, we just present ‘the ugly truth’ and is not our fault that CryptVision put themselves in such position.”
Ms. Tincu went on to claim that while it has “strong evidence of [CryptVision’s] lack of honesty and business ethics”, it is not willing to make the information public at this time. BitXatm has asked potential business partners that may have been in touch with CryptVision to contact it directly.
CryptVision is represented by Pillsbury Winthrop Shaw Pittman attorney Marco Santori, who recently joined Blockchain as its global policy council. It is entirely possible that CryptVision may commence its own production of in-house Bitcoin ATMs in future, although no time frame has been proffered with regard to this. With CryptVision’s former website having been consigned to the history books, with a rebranding on the horizon, as explained to CoinDesk by Mr. Yesayan.