Despite the uncertaintiessurrounding the virtual currency, several firms already have rolledout ATMs to handle bitcoins and more are on the way, according to anew report.

Titled “Introduction to Bitcoin ATMs,” the report by TremontCapital Group for the ATM Industry Association includes a rundown on how bitcoinworks and an update on efforts to regulateit around the globe, including in the United States. The FinancialCrimes Enforcement Network said last March that bitcoinadministrators and exchangers are considered money servicebusinesses and therefore required to register with FinCEN and besubject to the Bank Secrecy Act.

That means also then following anti-money laundering andknow-your-customer rules and reporting requirements, as well as thenet worth, surety bond, registration and licensing requirements formoney transmitter businesses in the 47 states that have thoserequirements. (The exceptions are Montana, New Mexico and SouthCarolina, the Tremont Capital Group report said.)

“Proper registration and compliance across the country isestimated to cost at least $5 million to $10 million and istherefore cost prohibitive for many,” the report said.

However, some major companies such as Overstock.com and theSacramento Kings of the NBA have begun accepting bitcoins and thereport said some exchanges are reporting adding thousands of otherparticipating retailers in recent months, a list they claim isgrowing rapidly.

“To the extent that bitcoin becomes a desired payment mechanismfor Millennials in the future, many retailers will accept it,” thereport said.

The report also outlines the various ways to obtain bitcoins,including in person and through online exchanges, marketplaces andmining, and concludes that ATMs may lead the list in some ways.

“The easiest way to exchange cash for bitcoin locally andinstantly is to complete a transaction using an ATM-like device,”the report said. “A purchaser simply scans his or her digital orpaper wallet, inserts cash into the machine, and bitcoins are addedto his or her wallet according to the exchange rate listed on thedevice.”

The report lists details on several makers of bitcoin ATMs,ranging in price from $5,000 to $18,500, and said, “Tremont CapitalGroup anticipates that a wide range of new players will attempt toenter the Bitcoin ATM market in 2014. Bitcoin as a currency needsto become more mainstream and the bitcoin ATMbusiness/profitability model needs to be refined and proven furtherin order to attract additional deployers.”

The exchange rate has varied wildly amid reports of regulatorcrackdown on the virtual currency, including at Mt. Gox, the majorexchange whose account at an Iowa credit union was seized by the U.S. Department of Homeland Security from paymentprocessor Dwolla because of alleged FinCEN guideline violations.

Also a problem has been hack attacks that have purloinedhundreds of thousands of the virtual coins – and led to Mt. Gox'srecent collapse and bankruptcy filing in Japan.

The report is free to ATMIAmembers and $195 to non-members, $145 until April 30.

“As of the writing of this report (March 2014) there remains agreat deal of excitement and uncertainty as to whether the use ofbitcoin and bitcoin ATMs will expand or contract in the comingyears,” the report concluded.