Leaders across the cash-to-crypto industry, including bitcoin ATM operators DigitalMint and Coinsource, blockchain analysis platform Chainalysis, and others, have formed the Cryptocurrency Compliance Cooperative to create a safer environment for consumers and to legitimize the cash-to-cryptocurrency industry by bolstering compliance standards that are deemed by many to be currently insufficient, according to a press release.
“While a small number of bitcoin ATM operators go above and beyond with know your customer and anti-money laundering 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,” Seth Sattler, director of compliance for DigitalMint, said in the press release.
Organizations encouraged to apply to the CCC include cash-based cryptocurrency money services businesses, regulatory bodies, financial institutions, suppliers, non-governmental and law enforcement agencies.
Meeting on a minimum quarterly basis, the CCC will allow members to stay abreast of regulatory updates, new industry standards and research. Moreover, members will share best practices and learn how to collaborate with industry leaders, regulators and law enforcement on how to enforce more robust compliance protocols.
Since 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. These machines, which resemble a traditional ATM, allow users to purchase cryptocurrencies with cash and, according to How Many Bitcoin ATMs, have surpassed 42,000 installations across the U.S.
According to an independent report conducted by the State of New Jersey Commission of Investigation, nearly 75% of the BTM operators with kiosks in the state allowed transactions to take place without requiring the customer to provide any information outside of a cell phone number.
Over half of these operators allowed for cryptocurrency transactions up to $900 with just a cell phone number, or in some cases, no information at all.