Bitcoin ATM Operators Joins Forces to Float New Compliance Cooperative - Blockchain.News

Bitcoin ATM Operators Joins Forces to Float New Compliance Cooperative

Godfrey Benjamin Aug 27, 2021 03:55

A group of crypto industry Bitcoin ATM operators and firms have floated the Cryptocurrency Compliance Cooperative to bolster regulatory compliance.

Bitcoin ATM Operators Joins Forces to Float New Compliance Cooperative

A group of crypto industry’s Bitcoin ATM (BTM) operators, including DigitalMint and Coinsource, as well as blockchain analysis platform Chainalysis amongst others, have launched the Cryptocurrency Compliance Cooperative (CCC), an associated with the underlying aim to promote regulatory compliance amongst players in cash to crypto industry for risk diversification to the consumers.

The majority of regulators worldwide are naturally sceptical about using digital currencies per their underlying pseudo-anonymous transactions. Along with the proliferation of self-service Bitcoin ATMs worldwide, the CCC believes there will be a need to promote a common culture amongst its members and the entire industry in seeking stipulated information that will help bolster laid down KYC and AML provisions from BTM users.

"The nefarious use cases plaguing this industry are well documented by several law enforcement agencies and include fraud, elder abuse, and drug and human trafficking," said Seth Sattler, Director of Compliance for DigitalMint and leading contributor of the Cryptocurrency Compliance Cooperative.

"While a small number of Bitcoin ATM operators go above and beyond with know your customer (KYC) and anti-money laundering (AML) protocols, others in the cash-to-crypto industry simply turn a blind eye and are complacent to these bad actors by simply applying the bare minimum customer protections, which in many cases allow for completely anonymous transactions."

The need for regulatory compliance has put many industry players at loggerheads with market watchdogs around the world. Seychelles-based BitMEX exchange has had to pay a $100 million settlement to the US Commodity Futures Trading Commission to settle various charges, including lack of implementing adequate KYC. 

The CCC seeks to bring in major players in the crypto ecosystem, including cash-based cryptocurrency MSBs, regulatory bodies, financial institutions, suppliers, non-governmental and law enforcement agencies. The body will organise meetings quarterly. It will always work to bring its members up to speed about regulatory demands, challenges and ways to meet compliance, amongst others.

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