Bitcoin ATM companies Coinsource and DigitalMint are shaking hands with Chainalysis (a blockchain analytics firm) to develop the CCC (Crypto Compliance Cooperative). CCC is being created to minimize illegal transactions and protect the customers of the cash-to-cryptocurrency industry. The prominent personalities in the industry are attempting to develop a convenient environment for the entire community and legalize their industry by enhancing compliance values that are presently considered to be deficient by a lot of people.
After their initial utility within the United States during 2014, Bitcoin ATMs, as well as the other cash-to-crypto alternatives, have assisted people to enter and take benefit from the market of cryptocurrency by permitting them to purchase crypto in return for cash. Such machines, having a resemblance to the traditional ATMs, have crossed the figured of 42,000 installations all around the United States. 130 BTMs (Bitcoin ATMs) are installed in Hong Kong, comprising Asia’s highest concentration of Bitcoin ATMs.
Seth Sattler, an important contributor of CCC and Digital Mint’s director regarding compliance, stated that various law enforcement firms had documented the illegal use of these machines to be troubling the industry to a great extent as the human and drug trafficking, elder abuse, and fraud are the prominent cases growing day by day. The Investigation Commission of New Jersey State conducted a report. The report points out that regardless of a few BTM operators that comply with the strict AML (antimony laundering) and KYC (know your customer) protocols, there still remains a huge amount of crypto-to-cash industry operators who turn a deaf ear toward the persons involved in such illegal activities and usually permit them to carry out their transactions anonymously.
The findings of the report figured out that approximately 75% of the operators of Bitcoin ATMs permitted certain transactions without demanding any information from the customer except his phone number. Moreover, 50% of them allowed customers to carry out crypto transactions counting more than US$900 with just the demand of a phone number, and in some other cases, they didn’t even require any information. Depending simply on the phone number, the report proposed is not sufficient to meet FinCEN KYC demands.
Bo Oney, the compliance’ head as well as vice president for operations under Coinsource, revealed that, unfortunately, numerous BTM operators consider that demanding a phone number is adequate to innocently escape their necessary KYC requirements. The CCC is pursuing to eliminate such attitude, and there will be a need for input from the people having maximum knowledge in the industry.