Crypto ATM firms Bitcoin DigitalMint and Coinsource revealed a new partnership to ensure that Bitcoin ATM operators meet all the security requirements.
Major Bitcoin ATMs are forming a partnership with other firms in the crypto space to fight illicit activities related to crypto ATMs. US-based traders Bitcoin DigitalMint and Coinsource have released the Cryptocurrency Compliance Cooperative (CCC) in partnership with blockchain analytics company Chainalysis.
The new association aims at strengthening compliance standards, as well as protecting consumers and improving regulations in the cash-to-crypto industry, CCC members said in a statement.
Ensuring KYC and AML Compliance
CCC’s charter of founding members also includes Anti-Human Trafficking Intelligence Initiative, Blockchain forensic firms, Elliptic, and CipherBlade; likewise to the companies Metropolitan Capital Bank, Royal Business Bank, Surety Bank, and the intelligent ATM operator Maya, among others.
The association targets Bitcoin ATMs to ensure compliance with Know Your Customer (KYC) and Anti-Money Laundering (AML) measures, as this type of equipment is often associated with a lack of security requirements.
Although many entities in the industry have already implemented the AML and KYC standards, others turned a blind eye and are complacent with bad actors, argued Seth Sattler, director of compliance at DigitalMint.
The CCC tried to fix the situation by encouraging money service companies, regulatory entities, financial institutions, providers, NGOs, and law enforcement agencies. The idea is that, as a united force, they can promote better practices and learn how to contribute with industry leaders. This way, the CCC would enforce deeper and stronger compliance protocols.
Bitcoin ATM is a Growing Industry
The compliance alliance seems particularly relevant amid the growing crypto ATM industry. During the coronavirus outbreak, the amount of Bitcoin ATMs increased exponentially. According to data from CoinATMRadar, there are at least 26,000 of these devices worldwide, with the United States of America being the country with the highest percentage (93.7%).
This figure is even higher according to an online tracker called How Many Bitcoin ATMs, which highlights that, in the US alone, there are currently more than 40,000 crypto ATMs. These metrics go parallel with other reports highlighting that the North American country leads the list of those nations prepared for large-scale adoption of digital currencies.
An independent study from the New Jersey State Commission of Inquiry stated that nearly 75% of Bitcoin ATM operators in the country allow some transactions to take effect without needing the customer to bring further information or even a phone number.
The firm CipherTrace has already predicted that cryptocurrency ATMs will face stricter regulations shortly. This regulatory framework is why in countries like the US, the CCC has decided to go ahead, and strengthen regulatory requirements.
By: Jenson Nuñez
