Bitcoin ATM operators form alliance to bolster compliance standards

Bitcoin ATM operators DigitalMint and Coinsource, together with analytics firm Chainalysis, have created Cryptocurrency Compliance Cooperative (CCC). Its mission is to create a safe environment for consumers and to legitimise the cryptocurrency‑ATM industry.

We’re proud to announce that we’ve joined @Crypto_3C, a collaborative association that advocates on behalf of the cash to #cryptocurrency industry to establish universal #compliance standards & regulatory controls. To learn more, visit: https://t.co/n1PDCAfSmm

— DigitalMint (@DigitalMintIO) August 25, 2021

Also joined the alliance were Elliptic, CipherBlade, as well as a number of financial institutions and consulting agencies. 

The coalition aims to attract fiat-to-crypto platforms, regulators, law enforcement agencies, and non-governmental organisations.

“Efforts are required of us. CCC is not a group, but a movement. We hope others will join the alliance. The improvement and modernization of the rules are necessary in the interests of public safety”, — said Seth Sattler, Director of Compliance at DigitalMint.

Quarterly meetings are planned, during which participants will update information on regulatory acts, industry standards and research, and share experiences of engaging with regulators.

“Unscrupulous actors employ minimal customer-protection measures, allowing fully anonymous transactions. The industry has faced cases of fraud, abuse of the elderly, drug trafficking and human trafficking”, — said Sattler.

The press release mentions a report by the New Jersey Independent Government Investigations Agency. According to the document, nearly 75% of bitcoin ATM operators did not require customers to provide information beyond a mobile phone number. In some cases, users could conduct fully anonymous transactions up to $900.

According to Coin ATM Radar, at the time of writing there were 25,841 Bitcoin ATMs globally (the United States had 22,722 devices). As of January 1, 2021 the indicator stood at 13,993 units.

The How Many Bitcoin ATMs site counted 42,266 ATMs and kiosks with first-cryptocurrency functionality in the United States. DigitalMint accounts for 2.2% of the market, CoinSource 2.5%.

As a reminder, the Hong Kong Securities and Futures Commission is considering a ban on the purchase of digital assets through crypto ATMs.

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