Crypto ATMs in Conflict with Regulators

February 3, 2022

The Government Accountability Office in the United States has demanded more information about the crypto ATMs where people can exchange money for Bitcoin. They are going to submit a report to Congress where they are looking forward to new regulations.

The agency wants other services to have insight into what’s happening in these kiosks to avoid money laundering and criminal activities. 

The GAO has noted that crypto ATMs are widely used to launder the proceeds from sex trafficking, various offenses, and drug dealing. Sometimes these kiosks are also used to spirit away consumers’ funds.

Even though such ATMs have some regulations before they are set, according to the GAO, more can be done. At the same time, the agency thinks more could be done to locate such devices.

It is not known whether Congress will impose new regulations or not. The GAO has only offered a restrictive measure, but the request will be heard in Congress.

Experts think that such a move from the GAO will bring crypto ATMs to more regulations, but the growing number of crypto ATMs still raises concerns about the security and safety of citizens. 

The FBI in its turn noted several times that in some cases, criminals and hackers have deceived people into converting money for Bitcoin. In reality, they were stealing customers’ funds.

While crypto has managed to establish itself as one of the most popular and innovative methods of payment, in numerous cases, it is related to crime and money laundering. Hackers who are launching attacks on users, demand ransom in Bitcoin or other cryptos that are difficult to trace.