Fiat ATMs are way easier to use than Bitcoin ATMs. You put in your card, enter a PIN code and withdraw (or sometimes deposit) your money from (or to) your bank account. That's it. You will get money in less than a minute.
Now let's look at the Robocoin ATM. You have to scan your ID, your palm and your face. And you have to wait for minutes to withdraw / deposit money. This isn't really customer-friendly and may distract the average joe from buying BTC. But what if you would have to do a one-time registration on the Robocoin ATM (and/or online on Roboco.in) for KYC/AML accompilance and then you get a printed paper (best would be in business card size so that it fits easily in wallets; also it should be printable online if you register and prove your identity on Robocoins website) which proves your identity with a unique code? Then you would only need to scan this card the next time, enter a PIN and withdraw your BTC.
Wouldn't this be a lot simpler? Am I missing something?
I think what you're seeing here is the regulation in its infancy. If bitcoin is ever to go mainstream, there will be levels of regulation in which helps the government track info about you. Things like going to a bank to have a new bitcoin number created, or getting a new bitcoin card made because you lost your old one are very possible. Keep in mind this is necessary for non-computer literate people.
In the future it might actually be illegal to sell BTC for fiat without a license of some sort in which you are required to keep receipts and customer names etc. This is the same reason why exchanges need to know exactly who you are before you can exchange money. Its not because they want to make it difficult to sign up, its because they are a business. Businesses need to cover their asses incase they get in trouble with the law. The government is likely concerned that if Joe Schmo robs a business of $10,000, he cant drive across town and deposit it into a bitcoin ATM where he can launder his money from home. Making them scan their palms and faces is a way to track who is depositing the money, where they are depositing it, and at what frequency. Perhaps you can ask them if they can remove the required palm/face scan for amounts under $50?
This reminds me of the slot machines where i live. They will only accept bills in 5, 10 and 20. $50 and higher are rejected, probably for money laundering reasons. (Although they tell you its to prevent over spending by gambling addicts) If you win over $5000 they need a scan of your photo ID and other personal information before you can collect the money.
