Bitcoin ATM operator establishes anti-money laundering association

Major Bitcoin (Bitcoin) ATM operators in the United States are joining forces to combat illegal activities related to Bitcoin ATMs.

Bitcoin ATM operators DigitalMint and Coinsource launched the Cryptocurrency Compliance Cooperative (CCC), a new association that aims to establish compliance standards for the Bitcoin ATM industry.

The new compliance work has roll out Among its 15 initial members, it is supported by major blockchain analysis companies such as Chainalysis and Elliptic. CCC now encourages the participation of cash-based cryptocurrency service companies, regulatory agencies, financial institutions, and non-state and law enforcement agencies.

The association specifically targets Bitcoin ATMs to ensure Know Your Customer (KYC) and Anti-Money Laundering (AML) compliance, as such ATMs are usually related to the lack of KYC requirements. Bo Oney, Director of Compliance at Coinsource, said: “Unfortunately, many BTM operators believe that simply asking for a mobile phone number is enough to exempt them from their mandatory KYC requirements.”

“This loose regulation provides a safe haven for bad actors to abuse machines for evil purposes. CCC is seeking to strengthen regulatory requirements for the benefit of all BTM users and operators. This will require input from the most knowledgeable people in the industry, all of this. Both are designed to enable consumers to use the cash to cryptocurrency space as safely as possible,” he added.

Seth Sattler, Director of Compliance at DigitalMint and the main CCC contributor, stated that illegal use cases related to the Bitcoin ATM industry have been documented in detail by multiple law enforcement agencies, including fraud, elder abuse, and drug and human trafficking.

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“Although a few Bitcoin ATM operators have surpassed the KYC and AML agreements, other operators in the cash-to-crypto industry just turned a blind eye to these bad actors and became complacent by simply applying minimal customer protection measures. In many cases , Allowing completely anonymous transactions,” Satler pointed out.

Similar to a traditional ATM, a Bitcoin ATM or BTM is an information kiosk that allows users to buy or sell Bitcoin and other cryptocurrencies using cash or debit cards.According to data from the BTM tracking website How Many Bitcoin ATMs, there are currently more than 42,000 American BTM.

In February, the New Jersey Commission of Inquiry discover 75% of BTM operators in the state allow certain transactions without the need for customers to provide any information other than a mobile phone number. Last year, an executive of CipherTrace, a blockchain analysis company, predicted that Bitcoin ATMs will face stricter regulation Globally, countries including Canada and Germany have begun to strengthen the necessary anti-money laundering regulations.