The Internal Revenue Services (IRS) is expanding its scrutiny of crypto projects. They’re using the same pretenses to go after another branch of the crypto industry that has been growing rapidly, but without garnering much attention; cryptocurrency ATMs.
The IRS is utilizing the same pretenses they use with other crypto projects. According to top executive at Bloomberg, IRS officials are concerned with potential money laundering, tax evasion, criminal activities and other issues with people using cryptocurrency ATMs without regulations.
A simple local Google Map search will yield 10s of crypto / Bitcoin ATMs in your area. These ATMs or kiosks allow individuals to buy, sell, and transfer Bitcoin and other popular digital assets locally around the globe.
There are no reported crypto / Bitcoin ATM mischief, but Chief John Fort, the head of the Criminal Investigation Division at the IRS they could be magnets for criminal activities.
Mr. Fort stated that the IRS is currently looking at the ATMs and their operators for potential compliance violations.
“If you can walk in, put cash in and get bitcoin out, obviously we’re interested potentially in the person using the kiosk and what the source of the funds is, but also in the operators of the kiosks.”
Because of current know-your-customer (KYC) and money laundering laws, these cryptocurrency ATM operators are required to collect identity verification data. However, Mr. Fort is not convinced the operators adhere to the regulatorial guidelines.
There are presently a few open cases against some ATM operators. Mr. Fort wants cryptocurrency exchange actors to be cautious.
“We have concern that as things tighten up here in the U.S., that we are pushing people to foreign exchanges.”
Do you think cryptocurrency ATMs can be abused by criminals to carry out their dirty deeds?
Mathieu is a Information technology professional with over 15 years of experience. He started one of the first bitcoin blogs existed in 2010. He started writing about, investing in bitcoin and promoting the first cryptocurrency when only a few technological savvy people knew about it. Mathieu is a world traveler who enjoys culture, technology, finance, salmon, rice and beans. He’s cool, collected and knows a great deal about blockchain technology.
Join the conversation - Use the form below