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Bitcoin ATM makers and Bitcoin firms team up to improve regulations

Key facts:
  • The self-proclaimed CCC aims to improve regulations and protect the consumer.

  • In the United States alone there are more than 42,000 bitcoin ATMs, but not all of them are KYC compliant, they say.

Manufacturers of bitcoin ATMs (BTC) and leading companies in the blockchain industry have announced the formation of an organization for regulatory compliance. It will be called the Cryptocurrency Legal Compliance Cooperative (CCC) and has 15 founding members.

As detailed in a statement published by PR Newswire, the objective of this new cooperative is to improve regulations around cryptocurrencies, which should be user-centered to “strengthen public safety and security.” In this way, by creating a safer environment for consumers and complying with legal standards, it is possible to legitimize the industry of exchange between cryptocurrencies and cash, explain the founders of the CCC.

It is important to consider that, in recent years, there are not a few actors who consider that regulations are insufficient and that the ecosystem should be further regulated. For this, the CCC will seek to stay ahead of developments and trends to avoid fraud. The application of state-of-the-art forensic technology is essential to this end, they say.

Currently, the organization is made up of the companies 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 and Trust Stamp.

According to the published writing, Other companies in the cryptocurrency sector can also join, financial entities, suppliers, non-governmental organizations and regulatory bodies. Meetings will be held at least quarterly.

Opinions and statistics

Seth Sattler, director of legal compliance for DigitalMint, a company that manufactures bitcoin ATMs, said that this peer-to-peer unit will combat practices such as fraud, elder scams, and drug and human trafficking. In addition, he argued that a smaller group of teller operators apply the policies of Know Your Customer (KYC, ‘Know your customer’ in English) and anti-money laundering (AML), while others “turn a blind eye” and support these criminal practices allowing to operate almost anonymously.

Bo Oney, Coinsource’s executive vice president of operations and chief legal compliance officer, spoke in the same vein. “Unfortunately, some ATM operators believe that simply asking for a cell phone number is enough to comply with the KYC.”

Another piece of information that the CCC needs in its statement is the fact that There are currently 42,000 bitcoin ATMs in the United States. These “help people effortlessly access the world of cryptocurrencies” by purchasing cryptocurrencies with cash.

In search of greater regulations for bitcoin

The founding policies of the Cryptocurrency Legal Compliance Cooperative are in line with what is expressed by the International Financial Action Group (FATF). In May, CriptoNoticias reported that this body would update its guidelines regarding activities with cryptocurrencies. However, its publication was finally postponed to October.

The current situation of cryptocurrency regulations is explained on the official site of the CCC. Source: crypto3c.org

One of the new recommendations (which member countries can decide whether to apply or not) was the implementation of KYC even on decentralized exchanges, while another planned to limit the withdrawal of cryptocurrencies from exchanges to private wallets. The latter was seen as a threat to privacy, and its rejection led to the FATF regulations being delayed for a few more months.

The companies that make up the cooperative

As mentioned, the CCC is not only made up of ATM manufacturers, such as Coinsource, Maya or DigitalMint, but also companies from other sectors. For example, analytics companies like Chainalysis, Cypherblade, and Elliptic make up the cooperative.

In addition, other companies that provide technological solutions participate as founders, such as Halo Privacy, which offers privacy support for software; The Knoble, which provides security for the prevention of online crimes; o Trust Stamp, which focuses on technology solutions for identity verification.

Even physical and digital banks have joined, such as Metropolitan Capital Bank, Royal Business Bank, Surety Bank and Titan Bank, NA Finally, Palmera Consulting is a financial consulting provider that is also part of it.

Tammy Sewell is our Writer and Social at OICanadian.com. Tammy loves sports, she writes our celebrities news. She spends time browsing through several celebs news sources as well the Instagram. Email: [email protected] Phone: +1 513-209-1700

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