Leaders in the cash-to-crypto sector have created an association, Cryptocurrency Compliance Cooperative (“CCC”), to curb money laundering.
Major crypto ATM operators that are members of this association are Bitcoin ATM (BTM) operators DigitalMint and Coinsource, blockchain analysis platform Chainalysis, and others.
The initiative, which was inspired by the growing issues about fraud, elder abuse, and drug and human trafficking, is aimed at improving cryptocurrency legislation and building consumer-centric frameworks for enhanced public safeguards and safety.
According to Seth Sattler, Director of Compliance for DigitalMint and leading contributor of the Cryptocurrency Compliance Cooperative, many law enforcement agencies have documented nefarious use cases plaguing the Bitcoin ATM industry.
Sattler mentioned some of these cases, including “fraud, elder abuse, and drug and human trafficking.”
In the last 24 hours, bitcoin is down by 1.81%, with a current price of $46,952.04 as at the time of writing this. Within 24 hours, bitcoin dropped to $46,359.79 low and $49,376.79 high. The trading volume of bitcoin in the last 24 hours is $36.24B. The current market capitalization of bitcoin is $882.57B. Currently, 18,798,000 bitcoins is in circulation.
Stats and Image from Coin Desk
He hinted that the complacency of some Bitcoin ATM operators towards applying strict (KYC) and anti-money laundering (AML) protocols might be responsible for the increasing fraudulent acts.
“While a small number of Bitcoin ATM operators go above and beyond with know your customer (KYC) and anti-money laundering (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,” he said.
CCC calls on cash-based cryptocurrency MSBs, regulatory bodies, financial institutions, suppliers, non-governmental and law enforcement agencies to join them as they fight against fraud in the industry.