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Bitcoin ATM operators set up association to counter money laundering


Bitcoin ATM operators set up association to counter money laundering. Likewise, in the USA, Major BTMs providers are collaborating to withstand against the illegal practices related to Bitcoin ATMs.

In fact, DigitalMint and Coinsource are two Bitcoin ATM firms, launched the Cryptocurrency Compliance Cooperative (CCC). Significantly, a comprehensive association that will assist Bitcoin ATM operators to meet compliance requirements.

Leading Blockchain Analytics Companies join CCC

The newly-arrived compliance project brings together 15 initial participants, including leading blockchain analytics companies like Chainalysis and Elliptic. In addition to cash-based crypto money services providers, CCC is urging the participation of regulators, financial institutions. As well, non-state, and law enforcement agencies.

Precisely, the association targets BTMs to ensure compliance with Know Your Customer (KYC) and Anti-Money Laundering (AML). Since this type of ATM is usually not subject to KYC requirements. Coinsource head of compliance Bo Oney stated, “regrettably, many BTM operators believe that asking for a cell phone number is sufficient due diligence to avoid their KYC obligations”.

Oney elaborated, “Such degraded provisions create a safe avenue for bad actors to exploit these machines for outrageous intents. Hence, CCC aims to strengthen regulatory requirements in the interest of BTM’s users and operators. Thus, to make the cash-to-crypto market as secure as possible, this will require input from the experts within the industry.

The unlawful use of BTMs, such as fraud, elder abuse, and drug and human trafficking, is properly documented by numerous law enforcement agencies, according to Seth Sattler, Director of Compliance at DigitalMint and a major CCC contributor.

Some BTMs comply while others turn a blind eye

“Actually, some Bitcoin ATM companies implement KYC and AML standards that go above and beyond those required by law. However, others are complacent when bad actors use their ATMs. Besides, they simply apply the bare minimal buyer protections, which in many cases allows for absolutely anonymous transactions”, Sattler noted.

Additionally, BTMs function similarly to standard ATMs. They allow users to buy or sell Bitcoin and other cryptocurrencies using cash or debit cards. There are presently more than 42,000 BTMs in the USA, according to the BTM monitoring website How Many Bitcoin ATMs.

BTM Operators are being utterly neglectful

The New Jersey Commission of Investigation detected in February that 75% of BTM operators in the state permitted specific deals to be arranged without requiring the customers to provide any additional information other than their phone number.

In conclusion, according to an executive of blockchain analytics firm CipherTrace, Bitcoin ATMs will encounter more strict guidelines globally, with nations such as Canada and Germany currently developing tighter AML guidelines.

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