- Bitcoin’s ATMs to face tighter regulations
- Reports of money laundering have put regulators on alert
- European countries have started to tighten their anti-money laundering regulations
Cryptocurrency News Today – Bitcoin’s ATMs will now be a target of stricter oversight (regulations) by regulators worldwide. Reports of money laundering through BATMs have risen in recent weeks. This is evident as countries like Canada and Germany moving to tighten up their anti-money laundering requirements.
According to a June 2 report, 74% of all transactions made from Untied States-based Bitcoin ATMs were transacted out of the country in 2019. 88% of all funds moved from U.S.-based crypto ATMs to digital currency exchanges were sent overseas. This figure has grown rapidly in recent years. It has doubled every year since 2017.
Bitcoin’s ATMs to Become “a Greater Area of Regulatory Focus
In an interview CipherTrace CTO, John Jeffries issued a prediction regarding BATMs. The executive said BATMs will soon be a greater point of regulatory focus. He also emphasized the need for a more uniform regulatory enforcement and overall compliance” concerning cryptocurrency ATMs.
Reports that Canada has tightened its Bitcoin ATMs reports, was published only two days after the country implemented new regulations that treat Canadian firms who are dealing with digital assets as MSBs (Money Service Businesses). Francis Pouliot of BTC Foundation Canada tweeted that the new law will predominantly affect firms that swap digital assets for cash. He also cited Bitcoin ATM operators as the group that will be most heavily impacted.
Bitcoin ATM operators must now report all transactions that are worth CAD 10,000 and above. The amended Proceeds of Crime and Terrorist Financing Act was reportedly passed during June 2019 after calls from Vancouver’s mayor to impose a city-wide ban on all Bitcoin ATMs due to money laundering concerns. At press time, there are over 778 crypto ATMs in Canada alone. This figure makes up 10% of the 7,958 crypto ATM terminals globally.
Global Regulators are Targeting Crypto Kiosks
Last July, Spanish law enforcement claimed that crypto ATMs are blind-spots in European AML (anti-money laundering) regulations after it identified a local gang that managed to launder a whopping $10 million for Columbian drug traffickers with Bitcoin’s ATMs. In November 2019, the United States IRS (Internal Revenue Service) launch an investigation into the illicit usage of digital currencies. The regulator highlighted the potential tax issues that have resulted from the use of Bitcoin kiosks and BATMs.
The German Financial Market Authority also took action against some unlicensed Bitcoin ATMs March this year. This crackdown was followed by the introduction of new stricter anti-money laundering regulations that target loopholes in Germany’s existing crypto regulations. Hence, evidence to back reports that BATMs are starting to face stricter oversight from regulators worldwide.