Not that we would ever get the information, but it would be interesting to see which ATMs get more business. Those with KYC and higher limits or those that take a phone number and nothing else.
More then likely, the higher limits ones are going to move more cash. I am talking pure number of transactions.
Also, and this is probably one of the more frustrating parts of it. It comes back to location.
I am in NY, we have bitlicense here and all the ATM operators play in those rules.
In NJ and CT the rules are not as strict. But there is no way I am driving 90+ minutes to get a few hundred in cash out of an ATM.
And, side thought. IF you are going through all that annoying KYC to convert from BTC to cash. At least in the USA you might as well get a BitPay debit card.
Or a Coinbase card. Etc.
To go from cash to BTC if you don't want KYC it's a bit more difficult.
-Dave
Topic: Bitcoin ATM operators set up association to counter money laundering (Read 157 times)
August 30, 2021, 08:45:15 AM
August 30, 2021, 05:59:42 AM
They are slowly taking away our freedoms and liberties from everywhere and everything we use, and one day people are just going to wake up and realize that we live in digital gulag prison.
Regular excuses for this is making world a safer place, protection of children, terrorism, money laundering, etc but in fact politicians and bankers are doing exactly this things they pretend to protect us from.
It's no surprise that Bitoin ATM will be under heavy regulation hit from governments so they are just trying to survive with making of this association to counter money laundering, but I wonder where is the limit of listening to government parasites?
Regular excuses for this is making world a safer place, protection of children, terrorism, money laundering, etc but in fact politicians and bankers are doing exactly this things they pretend to protect us from.
It's no surprise that Bitoin ATM will be under heavy regulation hit from governments so they are just trying to survive with making of this association to counter money laundering, but I wonder where is the limit of listening to government parasites?
August 30, 2021, 05:37:40 AM
Makes you winder if this is less about KYC but more about CYA (Cover Your Ass) if they look like they are doing a lot then even if there is some laundering going on they can say "we did more then required and even tried to get others onboard with it"
There was another thread about this and I wrote there too: aren't the ATM operators report the suspicious activity to law enforcement agencies in order to operate legally? And then what is all this?
But yeah, probably it's CYA (I like this acronym!) and a bit of extra advertising, not much else.
August 29, 2021, 10:32:52 AM
“Many BTM operators feel that merely asking for a cell phone number is enough due diligence to absolve them of their mandated KYC requirements,” a Coinsource exec said.
That should be enough, IMO. Here we go with the government taking away more of our freedom, more of our anonymity when it comes to money.I can't imagine that those cases of money laundering, elder abuse, and human trafficking(?) amount to a drop in the bucket as far as BTCATM involvement is concerned. The government just wants to be able to track people's money, to surveil in the name of protecting its citizens from a problem that they've made out to be much bigger than it really is.
It's happening, like it or not.
Not to say, we can't sit around and complain about it.
Yep, just like that ridiculous infrastructure bill with the cryptocurrency language in it. I'm sure there were a lot of bitcoiners who complained to their senators, but the bill just sailed right through anyway. The only thing left to do is....not use BTCATMs anymore, to vote with our dollars. I hate to see that happen, but if KYC requirements become more stringent, there's no way in hell I'm ever using one again. Not to say, we can't sit around and complain about it.
August 29, 2021, 07:29:41 AM
“Many BTM operators feel that merely asking for a cell phone number is enough due diligence to absolve them of their mandated KYC requirements,” a Coinsource exec said.
https://cointelegraph.com/news/bitcoin-atm-operators-set-up-association-to-counter-money-laundering
https://cointelegraph.com/news/bitcoin-atm-operators-set-up-association-to-counter-money-laundering
Thinking about it since my last post.
The comedian George Carlin had a routine that poked fun of the sayings on US License Plates.
More or less
Quote
"New Hampshire has 'Live Free Or Die' on their plates. Idaho has 'Famous potatoes' Reality is somewhere in between.
Same here. A phone number is probably not enough since there are Bitcoin ATMs in gas stations that sell disposable prepaid phones.
On the other hand, a full ID check with drivers license, SSN, and other forms of ID KYC are probably too extreme.
No different then in casinos where if you want to cash out chips more then a certain amount you have to show ID and above other amounts fill out IRS forms.
So although I don't agree with it or like it, I do see where they are coming from.
-Dave
August 26, 2021, 06:05:46 PM
Makes you winder if this is less about KYC but more about CYA (Cover Your Ass) if they look like they are doing a lot then even if there is some laundering going on they can say "we did more then required and even tried to get others onboard with it"
I really don't like having more KYC but in reality, anyone who thinks it's not going to become more and more part of converting BTC to fiat or fiat to BTC is mistaken.
It's happening, like it or not.
Not to say, we can't sit around and complain about it.
-Dave
I really don't like having more KYC but in reality, anyone who thinks it's not going to become more and more part of converting BTC to fiat or fiat to BTC is mistaken.
It's happening, like it or not.
Not to say, we can't sit around and complain about it.
-Dave
August 26, 2021, 12:14:58 PM
But if ATM machines were available to initiate transactions it's a good and a welcome idea, but will the machine also be responsible to dispense btc in form of coin?... Or whats is the main general idea behind the use of btc ATM?
• Bitcoin is a digital currency and while it can be embossed on a physical object, it only exists in its digital form.• Bitcoin ATMs exists to serve the same function of regular ATMs; it allows one to buy or sell bitcoin on the go.
August 26, 2021, 11:46:54 AM
While coming on this news thread talking about Bitcoin ATM, am a bit confused how possible is that going to be considering it's decentralization and not being control or monitored by Government itself, the idea behind it's anti-money laundering is good and the KYC requirements fit in the right projection. But if ATM machines were available to initiate transactions it's a good and a welcome idea, but will the machine also be responsible to dispense btc in form of coin?... Or whats is the main general idea behind the use of btc ATM?
“Many BTM operators feel that merely asking for a cell phone number is enough due diligence to absolve them of their mandated KYC requirements,” a Coinsource exec said.
https://cointelegraph.com/news/bitcoin-atm-operators-set-up-association-to-counter-money-laundering
Quote
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,” he added.
Seth Sattler, director of compliance for DigitalMint and leading CCC contributor, said that illicit use cases related to the Bitcoin ATM industry are well documented by several law enforcement agencies, including fraud, elder abuse and drug and human trafficking.
“While a small number of Bitcoin ATM operators go above and beyond with KYC and AML protocols, others in the cash-to-crypto industry simply turn a blind eye and are complacent to these bad actors by simply applying the bare minimum customer protections, which in many cases allow for completely anonymous transactions,” Sattler noted.
Similar to a traditional ATM, a Bitcoin ATM, or a BTM, is a kiosk allowing users to purchase or sell Bitcoin and other cryptocurrencies by using cash or debit card. According to data by BTM tracking website How Many Bitcoin ATMs, there are currently more than 42,000 BTMs in the United States.
In February, the State of New Jersey Commission of Investigation discovered that 75% of the BTM operators in the state allowed certain transactions without requiring the customer to provide any information outside a cell phone number. Last year, an executive from blockchain analytics firm CipherTrace predicted that Bitcoin ATMs would face stricter regulations worldwide, with countries including Canada and Germany already moving to strengthen necessary AML regulations.
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,” he added.
Seth Sattler, director of compliance for DigitalMint and leading CCC contributor, said that illicit use cases related to the Bitcoin ATM industry are well documented by several law enforcement agencies, including fraud, elder abuse and drug and human trafficking.
“While a small number of Bitcoin ATM operators go above and beyond with KYC and AML protocols, others in the cash-to-crypto industry simply turn a blind eye and are complacent to these bad actors by simply applying the bare minimum customer protections, which in many cases allow for completely anonymous transactions,” Sattler noted.
Similar to a traditional ATM, a Bitcoin ATM, or a BTM, is a kiosk allowing users to purchase or sell Bitcoin and other cryptocurrencies by using cash or debit card. According to data by BTM tracking website How Many Bitcoin ATMs, there are currently more than 42,000 BTMs in the United States.
In February, the State of New Jersey Commission of Investigation discovered that 75% of the BTM operators in the state allowed certain transactions without requiring the customer to provide any information outside a cell phone number. Last year, an executive from blockchain analytics firm CipherTrace predicted that Bitcoin ATMs would face stricter regulations worldwide, with countries including Canada and Germany already moving to strengthen necessary AML regulations.
“Many BTM operators feel that merely asking for a cell phone number is enough due diligence to absolve them of their mandated KYC requirements,” a Coinsource exec said.
https://cointelegraph.com/news/bitcoin-atm-operators-set-up-association-to-counter-money-laundering
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