Reports Show Government Intends To Imply Stricter Regulations On Cryptocurrency ATMs

Yesterday’s press release by the Federal Agency stated that cryptocurrency kiosks (or crypto ATMs) played an important role in increasing crime rates. United States GAO (Government Accountability Office), blames crypto kiosks in the rise of drug and human trafficking.

Their reason, however, was that cryptocurrency ATMs aren’t as restricted as crypto exchanges, making their transactions harder to track. GAO believes it is more challenging to curb illegal transactions because crypto kiosks have become more common in the U.S. as well as around the world.

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These impending problems that crypto kiosks could cause are being saved by the GAO. The Financial Crimes Enforcement Network FinCEN (IRS) was recommended to the GAO. They would work together to create more effective regulation on crypto ATMs.

Reports Show Government Intends To Imply Stricter Regulations On Cryptocurrency ATMs
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While observing the challenges in battling crypto-related crimes, GAO explained that the lack of information about crypto kiosks restrains law enforcement’s capability to defeat crime.

Several Agencies Battle Crypto Crimes

GAO also examines the global use of cryptocurrencies in trafficking and facilitating crime. There have been several agencies that are attempting to stop the rise in crypto-related crimes. The agencies are the Immigration and Customs Enforcement(ICE), U.S Postal Service, USPS and the Internal Revenue Service.

A List of Irregularities in Crypto Crimes

Although crypto-related crimes are increasing irregularly, the study still shows they have. The crypto research company recently released a report that proved the contrary. In the latter research’s findings, crypto crimes reached their lowest point in 2021-contrary to its increasing volume of the entire blockchain transactions in the year.

As cryptocurrencies are more widely used, the number of crypto-related criminal acts will also increase. But, overall cryptocurrency transactions are far more popular than criminal activity.

Crypto Kiosks And Human Trafficking

The GAO’s report showed that cryptocurrency has recently been adopted as a means of payment for human trafficking. By ‘human trafficking,’ we imply sex trafficking and labor trafficking. More often, sex-traffickers are now using cryptocurrency as a means of payment.

Bitcoin ATMs and drug trafficking

The report also stated that after the shutdown of Silk Road-the online dark web market—in 2013, the entire hidden web marketplace has become more secure. This makes it more difficult to find illicit drugs in the market. The growth of smaller marketplaces is another reason.

Tightening Gaps Against Cryptocurrency ATMs

The GAO’s problem with cryptocurrency ATMs is that, although the ATM operators must be registered with the FinCEN, they don’t usually notify law enforcement agencies about their ATMs’ locations. That action impedes the federal agencies’ access to locate ATMs in areas stated as high-risk regions for financial crimes.

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Therefore, increasing the regulation of cryptocurrency ATMs will allow the GAO to assume that the government can access more information in order to enforce its laws. Potentially illegal transactions will also be possible.

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