In Brief:
- Bitcoin ATM operators DigitalMint and Coinsource head the New Cryptocurrency Compliance Cooperative (CCC).
- The CCC looks to enhance cryptocurrency regulations while establishing consumer-centric frameworks for strengthened public protections and safety.
A group of crypto industry’s Bitcoin ATM (BTM) operators, including, DigitalMint and Coinsource, blockchain analysis platform Chainalysis, and others together announced the formation of the Cryptocurrency Compliance Cooperative (“CCC”).
The aim of the CCC is to create a safer environment for all consumers. It also aims to legitimize the cash-to-cryptocurrency industry by boosting compliance standards. Many have, currently, deemed these compliances.
“The nefarious use cases plaguing this industry are well documented by several law enforcement agencies, and include fraud, elder abuse, and drug and human trafficking,” said Seth Sattler, Director of Compliance for DigitalMint and leading contributor of the Cryptocurrency Compliance Cooperative.
“While a small number of Bitcoin ATM operators go above and beyond with know your customer (KYC) and anti-money laundering (AML) protocols, others in the cash-to-crypto industry simply turn a blind eye and are complacent to these bad actors by simply applying the bare minimum customer protections, which in many cases allow for completely anonymous transactions.”
The CCC will allow members to stay along with the regulatory updates, new industry standards and research. Several organizations are encouraged to apply to the CCC. These include Cash-based cryptocurrency MSBs, regulatory bodies, financial institutions, suppliers, non-governmental and law enforcement agencies.
Members will also share best practices. It will also learn how to collaborate with industry leaders, regulators, and law enforcement on how to enforce deeper and more robust compliance protocols.
In addition, the CCC will also look to stay ahead of developments and trends among threat actors. It will also learn how to best reduce fraud through the application of ever-improving technology and forensic tools.
“Unfortunately, many BTM operators feel that merely asking for a cell phone number is enough due diligence to absolve them of their mandated KYC requirements,” said Bo Oney, Executive Vice President of Operations and Head of Compliance at Coinsource.
“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 require 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.”
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“Lax compliance policies and high rates of illicit activity have long plagued the reputation of Bitcoin ATMs,” said Caitlin Barnett, Director of Regulation & Compliance, Chainalysis. “We are thrilled to support this initiative led by two leaders in the space to build trust in Bitcoin ATMs and promote more financial freedom with less risk.”
The Initial Members of The CCC include:
- Anti-Human Trafficking Intelligence Initiative
- Chainalysis
- CipherBlade
- Coinsource
- DigitalMint
- Elliptic
- Halo Privacy
- Maya
- Metropolitan Capital Bank
- Palmera Consulting
- Royal Business Bank
- Surety Bank
- The Knoble
- Titan Bank, N.A
- Trust Stamp
