US Authorities Want to Tighten up Crypto ATM Regulations

Crypto ATMs installed in 2021 are now under the watchful eye of the United States Government Accountability Office (GAO). According to the US authorities, these ATMs are connected with illicit human and drug trafficking. In its report, GAO stated that registration rules for crypto ATMs should be improved.

A Correlation Between Crypto and Illegal Human Trafficking

In the analysis issued on January 10, GAO found a correlation between cryptocurrency use and illegal human and drug trafficking and crypto ATMs. According to the group, crypto ATMs are often used to make illicit purchases.

Unfortunately, at the same time, they’re less regulated, which makes the transactions harder to track.

This means that the absence of information about the ATMs, the people who use them, and the acts carried through them prevent law enforcement from identifying and prosecuting potential offenders.

GAO adds that imposing stronger regulations would provide access to information about the kiosk’s location and usage, which could lead to discovering “potentially illicit transactions.”

The report also called FinCEN and IRS to work together in defining the registration requirements for these ATMs and exchanges.

Overall, GAO discovered that over 40 large online commercial sex markets might be used as a means to promote sex trafficking and allow cryptocurrency payments. What’s more, about 36% of all US Immigration and Customs Enforcement investigations that involved crypto happened to be related to drug trafficking.