Skip to content

Bitcoin ATMs are subject to stricter anti-money laundering regulations

June 3, 2020

According to some experts, Bitcoin ATMs (BATM) will be available soon You will be subject to stricter regulations worldwide: Countries like Germany and Canada are already moving Enforcement of anti-money laundering requirements.

CipherTrace estimates that 74% of Bitcoin ATM transactions in the U.S. were in 2019 were shipped out of the country. The company also found that 88% of the money from cryptocurrency ATMs was sent to exchanges You were transferred abroad. As if that wasn’t enough These percentages increase from year to year.

John Jeffries, CTO of CipherTrace, said during an interview with Law360:

“”[Los cajeros automáticos de Bitcoin] They will become an important regulatory focus. […] Better compliance and law enforcement are needed. “

Canada is tightening regulations

Bitcoin ATMs are subject to stricter anti-money laundering regulationsBitcoin ATMs are subject to stricter anti-money laundering regulations

The report from CipherTrace was released two days after New law introduced in Canada. Companies that work with cryptocurrencies are now considered in all aspects of companies that Offer monetary services.

Francis Pouliot, CEO of the Bitcoin Canada Foundation and the local BullBitcoin exchange, explained on Twitter as The new regulation mainly affects companies that enable the exchange of cryptocurrencies for fiat money. like Bitcoin ATM operators.

According to CoinATMradar data currently There are 778 cryptocurrency ATMs in Canada: Almost 10% of the 7,958 terminals worldwide. In June last year the city Vancouver considered banning Bitcoin ATMs due to money laundering concerns.

Global regulators target “crypto kiosks”

The Spanish police announced this in July 2019 ATMs with cryptocurrency are a blind spot for anti-money laundering regulations in Europe. Police officers found that a single local gang had washed $ 10 million through these terminals for Colombian drug traffickers.

In November the US Internal Revenue Service (IRS). USA researched the illegal use of cryptocurrencies, Highlight the tax issues that arise from using Bitcoin ATMs.

BaFin, the body that regulates financial institutions Germany has also taken measures against Bitcoin ATMs to close possible gaps in the German legal framework for cryptocurrencies.