Topic: [2021-08-26] Bitcoin ATM operators set up association to counter money launderi (Read 87 times)

Why not launched Finger print KYC methods where individual would finger tap the machine before enable transaction free from the ATM. this would have been very better as Phone number or cell phone can be stolen from the real owner leading to fraud and the rest.

This news puzzles me greatly. Don't they have to already report to authorities anything suspicious related to money laundering, in order to operate legally? Don't they ask for KYC info on larger amounts exactly because of this? And then.. what's the news about?!

In Germany one Bitcoin ATM operator a while back went with this sort of excuse to go after their competitors' more user-friendly ATMs which had to be shut down.

I don't know exactly how these bitcoin ATMs work because in my country they don't have and I've never had the opportunity to see at least one bitcoin ATM, so I ask myself:

how do KYC on these bitcoin ATM?

Personally, I have nothing against them but I wouldn't call a BTM operator with around 2.2% - 2.5% market share ^{[according to "BTM tracking website" - as stated in that article]} as Major!
^{- By doing that, they'll be shooting themselves in the foot [referring to BTM operators and some of the involved banks]: More requirements = Less customers}

Bitcoin ATM operators set up association to counter money laundering

Major Bitcoin (BTC) ATM operators in the United States are joining forces to fight illicit activity related to Bitcoin ATMs.

Bitcoin ATM operators DigitalMint and Coinsource have launched the Cryptocurrency Compliance Cooperative (CCC), a new association that aims to establish compliance standards for the Bitcoin ATM industry.

The new compliance effort has launched with support from major blockchain analytics firms, such as Chainalysis and Elliptic, among its 15 initial members. The CCC is now encouraging participation from cash-based crypto money services businesses, regulators, financial institutions, as well as non-state and law enforcement agencies.

The association specifically targets Bitcoin ATMs to ensure Know Your Customer (KYC) and Anti-Money Laundering (AML) compliance, as this type of ATMs is often associated with a lack of KYC requirements. “Unfortunately, many BTM operators feel that merely asking for a cell phone number is enough due diligence to absolve them of their mandated KYC requirements,” Coinsource head of compliance Bo Oney said.

“Such lax provisions provide a safe haven for bad actors to abuse the machines for nefarious purposes. The CCC is seeking to bolster regulatory requirements for the benefit of all BTM users and operators. This will require input from the most knowledgeable in the industry, all with the goal of making the cash-to-crypto space as safe as possible for consumers

Read more  https://cointelegraph.com/news/bitcoin-atm-operators-set-up-association-to-counter-money-laundering