Bitcoin ATM Operators Form Consortium To Tighten Compliance Standards

Leading Bitcoin ATM operators such as DigitalMint and Coinsource, have led a consortium to form the Cryptocurrency Compliance Cooperative (CCC) that will focus on establishing compliance standards for the cash-to-cryptocurrency industry, including Bitcoin ATM operators. The compliance standards are currently deemed by many to be insufficient.

The CCC will advocate on behalf of the cash-to-cryptocurrency industry to establish universally accepted compliance standards, best practices, and regulatory controls. It is supported by major blockchain analytics firms, such as Chainalysis and Elliptic, among its 15 initial members.

CCC is dedicated to enhancing cryptocurrency regulations while establishing consumer-centric frameworks for public safety to prevent hacks and scams. The industry leaders will look to raise compliance standards and create a safer space for crypto users.

Organizations are being encouraged to apply to the CCC, including cash-based cryptocurrency MSBs, regulatory bodies, financial institutions, suppliers, non-governmental and law enforcement agencies.

Joining the CCC will enable members to stay current with regulatory updates, new industry standards and research. Members will also be able to share best practices and learn how to collaborate with industry leaders, regulators, and law enforcement to put in place deeper and more robust compliance protocols.

The CCC is seeking to bolster regulatory requirements for the benefit of all BTM users and operators. Lax provisions like asking for only a cell phone number to meet mandated Know Your Customer (KYC) norms by BTM operators provide a safe haven for bad actors to abuse the machines for nefarious purposes. The high rates of illicit activity have long plagued the reputation of Bitcoin ATMs.

The lack of KYC and Customer Identification Program (CIP) requirements hinders cryptocurrency providers from detecting terrorist financing, credit card theft, human trafficking, child exploitation, and money laundering.

Since their first deployment in the U.S. in 2014, BTMs and other cash-to-crypto point-of-sale locations have helped individuals effortlessly access the world of cryptocurrencies. The BTMs have reportedly surpassed 42,000 installations across the U.S. and enable users to purchase cryptocurrencies with cash.

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