Bitcoin ATM Operator Fights to Avoid Money Laundering Association
Bitcoin ATMs were a great discovery, but it has been some time now. Since the establishment of the Bitcoin ATMs, they have been under heavy scrutiny. The same is that Bitcoin ATMs are the target tool for money laundering and other criminal activities. A group of automated teller operators has developed a community to avoid money laundering and advocate industry alliance to deal with the situation.
The criminal activity groups often target places that are garnering more attention. Their objective is to scam the public and make personal gains out of it. The practice has grown substantially during the last couple of years. Undeniably, the threat on physical cryptocurrency places like ATMs is large.
The Cryptocurrency Compliance Cooperative is planning ways to set regulatory compliance standards for clear cash-to-cryptocurrency transferring. They are aiming for establishing best practices, building relationships with regulators, law enforcement, and banks.
Presently, in the U.S., there are 42,000 BTC ATMs. According to the U.S. Drug Enforcement Administration (DEA) intelligence program’s 2020 National Drug Threat Assessment, the growing popularity of cryptocurrency has spiked the threat for the ATMs to be used by money laundering organizations (MLO).
As per NDTA, there are already anti-money laundering regulations exercised substantially. There are still some organizations that are conducting drug proceeds under the name of regulated forums. The MLO is increasing despite such strict scrutiny. Reportedly, cryptocurrency ATMs are used to aid their deeds, and thus, cryptocurrency is used in bulk.
NDTA is planning to come up with specific regulations to control money laundering activities. The regulation will take some time to get approved and further implementation. The issue raised by NDTA has created a stir in the community. It is anticipated that everything will be settled soon.