The self-styled CCC aims to improve regulations and protect consumers.
There are more than 42,000 bitcoin ATMs in the U.S. alone, but not all are KYC compliant, they claim.
Bitcoin (BTC) ATM manufacturers and leading blockchain industry companies have announced the formation of a regulatory compliance organization. It will be called the Cryptocurrency Legal Compliance Cooperative (CCC) and has 15 founding members.
As detailed in a statement published by PR Newswire, the goal of this new cooperative is to improve the regulations surrounding cryptocurrencies, which should be user-centric to “strengthen public safety and security”. In this way, by creating a safer environment for consumers and complying with legal standards, it is possible to legitimize the cryptocurrency and cash exchange industry, explain the founders of the CCC.
It is important to consider that, in recent years, more than a few players believe that regulations are insufficient and that the ecosystem needs to be further regulated. To this end, the CCC will seek to stay ahead of developments and trends to prevent fraud. The application of state-of-the-art forensic technology is critical to this end, they say.
Currently, the organization is comprised of Anti-Human Trafficking Intelligence Initiative, Chainalysis, CipherBlade, Coinsource, DigitalMint, Elliptic, Halo Privacy, Maya, Metropolitan Capital Bank, Palmera Consulting, Royal Business Bank, Surety Bank, The Knoble, Titan Bank and Trust Stamp.
According to the published brief, other companies in the cryptocurrency industry, financial institutions, vendors, non-governmental organizations and regulatory bodies may also join. Meetings will be held at least quarterly.
Opinions and statistics
Seth Sattler, chief legal compliance officer at DigitalMint, a company that makes bitcoin ATMs, claimed that this peer-to-peer unit will allow for combating practices such as fraud, scamming seniors, and drug and human trafficking. In addition, he argued that a smaller group of ATM operators enforce Know Your Customer (KYC) and anti-money laundering (AML) policies, while others “turn a blind eye” and support these criminal practices by allowing them to operate almost anonymously.
Bo Oney, executive vice president of operations and chief legal compliance officer at Coinsource, weighed in. “Unfortunately, some ATM operators believe that just asking for a cell phone number is enough to comply with KYC.”
Another fact that the CCC points out in its statement is the fact that in the U.S., there are currently
ad 42,000 bitcoin ATMs. These “help people access the world of cryptocurrencies effortlessly” by buying cryptocurrencies with cash.
Seeking greater regulations for bitcoin
The founding policies of the Cryptocurrency Legal Compliance Cooperative are in line with those expressed by the Financial Action Task Force (FATF). In May, CryptoNews reported that the FATF would update its guidelines on cryptocurrency activities. However, its publication was finally postponed to October
. The official CCC website explains the current status of cryptocurrency regulations. Source: crypto3c.org
One of the new recommendations (which member countries can decide whether to implement or not) was the implementation of KYC even in decentralized exchanges, while another was to limit the withdrawal of cryptocurrencies from exchanges to private wallets. The latter was seen as a threat to privacy, and its rejection led to the FATF regulations being delayed for a few more months.
The companies that make up the cooperative
As mentioned, the CCC is not only composed of ATM manufacturers, such as Coinsource, Maya or DigitalMint, but also includes companies from other industries. For example, analytics companies such as Chainalysis, Cypherblade and Elliptic are part of the cooperative.
Other companies that provide technological solutions also participate as founders, such as Halo Privacy, which offers privacy support for software; The Knoble, which provides security for the prevention of online crimes; or Trust Stamp, which focuses on technological solutions for identity verification.
Even physical and digital banks have joined, such as Metropolitan Capital Bank, Royal Business Bank, Surety Bank and Titan Bank, N.A. Finally, Palmera Consulting is a financial consulting provider that is also part of it.