Major Bitcoin (BTC) ATM operators in the Us are joining forces to fight illicit activity related to Bitcoin ATMs.

Bitcoin ATM operators DigitalMint and Coinsource have launched the Cryptocurrency Compliance Cooperative (CCC), a new association that aims to found compliance standards for the Bitcoin ATM industry.

The new compliance try has launched with support from major blockchain analytics firms, such as Chainalysis and Elliptic, among its xv initial members. The CCC is at present encouraging participation from cash-based crypto money services businesses, regulators, financial institutions, as well as non-country and police enforcement agencies.

The association specifically targets Bitcoin ATMs to ensure Know Your Customer (KYC) and Anti-Money Laundering (AML) compliance, as this type of ATMs is ofttimes associated with a lack of KYC requirements. "Unfortunately, many BTM operators experience that just asking for a cell phone number is enough due diligence to absolve them of their mandated KYC requirements," Coinsource head of compliance Bo Oney said.

"Such lax provisions provide a safe haven for bad actors to abuse the machines for nefarious purposes. The CCC is seeking to bolster regulatory requirements for the benefit of all BTM users and operators. This will crave input from the most knowledgeable in the industry, all with the goal of making the cash-to-crypto space as safe as possible for consumers," he added.

Seth Sattler, director of compliance for DigitalMint and leading CCC correspondent, said that illicit use cases related to the Bitcoin ATM industry are well documented by several law enforcement agencies, including fraud, elderberry abuse and drug and man trafficking.

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"While a small number of Bitcoin ATM operators go above and beyond with KYC and AML protocols, others in the greenbacks-to-crypto industry simply turn a bullheaded centre and are conceited to these bad actors past simply applying the bare minimum customer protections, which in many cases allow for completely bearding transactions," Sattler noted.

Like to a traditional ATM, a Bitcoin ATM, or a BTM, is a kiosk allowing users to purchase or sell Bitcoin and other cryptocurrencies by using cash or debit card. According to data past BTM tracking website How Many Bitcoin ATMs, there are currently more than 42,000 BTMs in the United States.

In February, the State of New Bailiwick of jersey Commission of Investigation discovered that 75% of the BTM operators in the state immune certain transactions without requiring the customer to provide any data exterior a cell phone number. Final year, an executive from blockchain analytics firm CipherTrace predicted that Bitcoin ATMs would face up stricter regulations worldwide, with countries including Canada and Federal republic of germany already moving to strengthen necessary AML regulations.