Crypto ATMs come into the crosshairs of regulators

The US Government Accountability Office (GAO) requested more information about the locations of kiosks where people can exchange Bitcoin (BTC) and other cryptocurrencies.

The agency wants the Internal Revenue Service and Financial Crimes Enforcement Network (FinCEN) to have more oversight over what has colloquially become known as “crypto ATMs”.

The GAO cited the high risk of these kiosks being used to launder the proceeds of various crimes, such as sex trafficking and drug dealing, for example, or to spirit away consumers’ funds.

While the companies that deploy such ATMs already comply with a slew of regulations, there is still more that can be done according to the GAO. The agency is not convinced that there is sufficient data submitted about the location of such devices.

The GAO is only recommending the measure, but it’s likely that its request will be heard in Congress and could lead to another swift rejuggling of crypto regulation.

While the GAO’s move may seem like another attempt at overregulation, there have been genuine concerns about going after crypto ATMs.

According to the FBI, there have been numerous instances where high-tech criminals have fooled people into believing they were converting their money into crypto where, in reality, they were stealing their money.

Crypto has also made a bit of a bad name for itself by being related to numerous crypto crimes.

Hackers who launch cyberattacks usually demand that they are paid directly in BTC, Dogecoin, Monero or another viable cryptocurrency, owing to them being difficult to trace.

If you want to use crypto safely, we recommend obtaining yours from a licensed online exchange.

You can then use your BTC to enjoy the available games at Bitcasino, 1xBit or FortuneJack.

 

Source

Updated: 01/13/2022 — 20:00

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