BTM Compliance is too Rigid for Money Launderers

One Bad Apple

Sure, there was one guy who operated an unlicensed BTM and exchange, using his non-compliant setup to trade $25 million worth of crypto for criminals, including drug dealers, and other darknet users. 25-year-old Kunal Kalra, a.k.a. Kumar, Shecklemayne and Coinman, pleaded guilty to four felonies last August in a plea bargain. Failing to license the machine was one of those felonies. Another was failing to maintain a compliant AML program.

Travel Rule

Not only that, but starting now, similarly strict AML processes must be followed worldwide, as the Financial Action Task Force (FATF) Cryptocurrency Travel Rule kicked in this month. The FATF is the global AML watchdog, and the Travel Rule states that all Virtual Asset Service Providers (VASPs) have to follow the same requirements as standard financial institutions with regards to collecting customer information during transactions.

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The world’s leading operator of two-way Digital Currency Machines (DCMs), more advanced Bitcoin ATMs.