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Increasing Regulations for BATMs Over Incidents of Money Laundering


Increasing Regulations for BATMs Over Incidents of Money Laundering

Amidst the exponential growth and adoption of crypto enabled ATMs, there has also been a hike in the cases of money laundering. According to a report by CipherTrace published on 2 June 74% of BATMs transactions in the US comprised overseas transfers in the year 2019. With most of the funds going overseas, several industry experts like the CTO of CipherTrace John Jeffries believe that crypto ATMs will increasingly become the focal point of regulations in the time to come to increase accountability. 

Countries like Canada and Germany are already in compliance with the regulatory measures that are to be implemented on crypto regulated ATMs (BATMs). 

Stringent Bitcoin ATM Regulations: Canada 

The CipherTrace report was published following the implementation of regulations in the Canadian firms dealing with virtual currencies that will now be recognized as money service businesses.

According to a tweet from Francis Pouliot of Bitcoin Foundation Canada, the new set of measures employed to regulate BATMs for the prevention of money laundering cases has also been designed for firms that barter crypto for cash. For that matter, the emphasis is mostly on Bitcoin ATMs. Bitcoin ATM operators are now provided with the responsibility to report about transactions worth $10,000 or even more. 

Money laundering concerns in Canada have been the focus for quite some time with the mayor of Vancouver even advocating a ban on BATMs. However, Canada still has 10% of the total 7958 terminals in the world. 

Regulatory Target on Bitcoin ATMs Worldwide 

In the previous year, the Spanish police dealt with a case of a single local gang that had laundered a sum of around $10 million for Columbian drug traffickers using Bitcoin ATMs. The case brought forward the need for regulatory bodies to pay attention to Bitcoin ATMs to bring them under the purview of AML laws.  In general, there has been an increase in regulatory bodies globally increasing regulations owing to increased money laundering cases. For instance, the German Financial Market Authority has employed preventive measures against bitcoin ATMs which lacked a license. The USA based Internal Revenue Services too is increasingly investigating unlawful activities involving bitcoin ATMs. 

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I am a content writer with interests in life sciences and blockchain. I believe that blockchain has the potential to transform every aspect of human endeavor. I love surfing the internet, reading, learning new things, and trying new cuisines.


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