Bitcoin ATMs Encounter Secured Regulations on Money Laundering

The global regulatory landscape is increasingly secured for crypto ATM operators.

The Bitcoin ATMs (BATMs) will face strict regulations with countries including Canada and Germany are already moving forward to tighten anti-money laundering requirements.

Reports from CipherTrace estimate that 74% of transactions made from U.S.-based Bitcoin ATMs shipped overseas in 2019. There’s 88% of funds sent from U.S. crypto ATMs were to a virtual currency exchange being transferred overseas. The figure has seen rapid growth in recent years, doubling every year since 2017.

CipherTrace CTO predicted that BATM would be a “larger regulatory focus,” emphasizing the “need for more enforcement and compliance” of advanced crypto ATMs.

Canada tightens Bitcoin ATM rules

The CipherTrace report a new regulation effect with Canadian firms dealing with virtual currencies when the Money Services Business (MSB) came into force. Bitcoin ATM are required to report all transactions worth $10,000 CAD or more.

The Crime and Terrorist Financing Act was amended in June 2019 amid calls from the mayor of Vancouver to impose a BATM ban worldwide.

According to CoinATMradar, there are currently 778 crypto ATMs operating in Canada – representing almost 10% of 7,958 terminals worldwide.

Global regulators aim crypto kiosks

Spanish police identified blind-spot to European anti-money laundering (AML) rules after a local group that had embezzled about $ 10 million for Columbia drug dealers using BATM.

The United States Internal Revenue Service (IRS) investigated the use of cryptocurrency illegally and potential tax problems caused by ATMs and Bitcoin kiosks.

The German Financial Market Authority (BaFin) react against an unlicensed Bitcoin ATM in March this year. The introduction of new anti-money laundering rules targeting holes in German cryptocurrency rules that were previously in place.

Source: Cointelegraph

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