Bitcoin ATM operators form partnership to prevent money laundering
Bitcoin ATM operators form partnership to prevent money laundering By Hannah Perez

Crypto Bitcoin crypto ATM firms DigitalMint and Coinsource launched a new partnership to ensure Bitcoin

ATM operators meet security requirements.

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Leading Bitcoin

ATM

operators are forming a partnership with other crypto firms to combat illicit activities related to crypto ATMs

.

US-based operators Bitcoin DigitalMint and Coinsource have launched the Cryptocurrency Compliance Cooperative (CCC) in alliance with blockchain analytics firm Chainalysis

.

The new partnership aims to strengthen compliance standards, as well as protect consumers and improve cash-to-crypto industry regulations, CCC members said in a statement

.

The CCC’s mission is to create a safer environment for all consumers and to legitimize the cash to cryptocurrency industry by strengthening compliance standards that many currently consider insufficient.

Ensuring KYC and AML compliances

The CCC’s list of founding members also includes Anti-Human Trafficking Intelligence Initiative, Blockchain forensics firms Elliptic and CipherBlade. Also, companies Metropolitan Capital Bank, Royal Business Bank, Surety Bank, and smart ATM operator Maya

, among others.

The partnership specifically targets Bitcoin ATMs to ensure compliance with the measures.

s Know Your Customer (KYC) and anti-money laundering (AML), as this type of equipment is often associated with a lack of security requirements. Coinsource‘s chief compliance officer, Bo Oney, noted in this regard:

Unfortunately, many [Bitcoin ATM] operators feel that simply asking for a mobile phone number is enough diligence to absolve them of their mandatory KYC requirements. Such lax provisions provide a safe haven for bad actors to abuse the machines.

While many in the industry have already implemented AML and KYC standards, others “simply turn a blind eye and are complacent to bad actors,” Seth Sattler, chief compliance officer at DigitalMint, argued along the same lines.

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To remedy the situation, the KYC is encouraging the participation of money services businesses, regulators, financial institutions, vendors, NGOs and law enforcement agencies. The idea is that, between them all, they can drive “best practices and learn how to collaborate with industry leaders,” as well as “enforce deeper and more robust compliance protocols.”

Bitcoin ATMs: a growing industry

The compliance alliance seems especially important amid the growing crypto ATM industry. During the coronavirus pandemic, the number of Bitcoin ATMs increased exponentially. According to data from CoinATMRadar, there are currently about 26,000 of these machines worldwide, with the United States having the highest percentage (93.7%).

This figure is even higher according to an online tracker called How Many Bitcoin ATMswhich indicates that there are currently more than 40,000 cryptocurrency ATMs in the U.S. alone. These metrics are consistent with other reports that indicate that the U.S. tops the list of those nations poised for large-scale digital currency adoption.

Meanwhile, an independent study by the New Jersey State Commission of Investigation says that nearly 75% of ATM operators in Bitcoin in the country allow certain transactions to take place without requiring the customer to provide information beyond a phone number.

In this regard, the firm CipherTrace has already predicted that cryptocurrency ATMs will face stricter regulations in the near future. This is why in countries like the US, the CCC has decided to go ahead to strengthen regulatory requirements.

We have to do better. This is not just an industry group.a, it’s a movement,” Sattler commented. “We are hopeful that others will hear our call and join this cooperative as we push for improved and modernized regulations in the best interest of public safety.”

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Sources: PRNewsWire, Decrypt, Cointelegraph, CoinATMRadar, archive

Version by Hannah Estefania Perez / DiarioBitcoin

Image by Unsplash