Checklist for Crypto ATM Operators

Checklist for Crypto ATM Operators

The very first Bitcoin (BTC) ATM came to the United States in 2014 to Austin, Texas. This historic event occurred quickly after Canada pioneered the idea in 2013, and the excitement and demand for such ATMs have soared across the globe ever since. There are currently over 8,000 BTC ATMs in more than 70 countries worldwide. In fact, the highest number of Bitcoin ATMs was recorded in the U.S. in 2020, and as of April 2020, approximately 81% of global ATMs were concentrated in North America.

Two types of Bitcoin ATMs exist, with one being more complex than the other. The more basic one simply enables users to purchase Bitcoin, whereas the more complex one provides the function of both buying and selling. These new-age machines have sky-rocketed in popularity, overtaking Bitcoin exchanges as a preference for many. The exchange of fiat for Bitcoin is now a seamless procedure, with Bitcoin ATMs offering a fast and user-friendly experience. This all sounds great — but how can ATM operators buy a machine and set it up in their desired location?

There is just one thing we haven’t mentioned until now — compliance. Bitcoin ATM operators need to ensure a comprehensive compliance framework that appeases Know Your Customer and Anti-Money Laundering regulations, as well as other laws on a federal and state level. Without necessary compliance measures fully in place, Bitcoin ATM operators will be forced to shut down. In short, compliance is key.

It’s crucial to understand that regulation for Bitcoin ATMs varies from state to state — some states are more welcoming than others. New York has much stricter requirements than Texas, for example. These differences are abundant and are constantly updated.

For example, in some states, money transmitter requirements declare that you must acquire a money transmitter license. Any operator without a license is committing an imprisonable offense, even if it has completed every other step toward compliance. Therefore, it’s important to research the specific states in which you are operating to avoid any difficulty.

The federal regulations relating to Bitcoin ATMs are outlined in the Bank Secrecy Act, or BSA. This law requires all financial institutions, including Bitcoin ATMs, to assist U.S. government agencies in both detecting and preventing money laundering. Therefore, Bitcoin ATMs must adhere to the regulations of the BSA and rules relating to AML. As mentioned above, both federal and state laws must be followed. For this reason, it is crucial that you research the law in the specific states that you operate in, too.

In the U.S., Bitcoin ATMs are considered Money Services Businesses and, therefore, are subject to the regulation of the U.S. Treasury’s Financial Crimes Enforcement Network, or FinCEN. Every Bitcoin ATM operator must register as an MSB with FinCEN.

FinCEN is the U.S.’ financial intelligence unit and arbiter of federal AML laws. Registration is a simple step that involves registering via the online portal with a basic “check-the-box” process. By registering with FinCEN, you are essentially agreeing to be regulated by the entity. This also includes registering at a state level and developing an AML program in most cases, retaining transactional information and reporting any suspicious activity. For state-level regulation, you must complete a permission-based state licensing process.

Once registered with FinCEN, operators must comply with the BSA as outlined above. This involves a Bitcoin ATM operator establishing and implementing an anti-money laundering compliance program — a written document that explains an operator’s overall plan to prevent its Bitcoin ATMs from facilitating money laundering activities. An AML program must address a minimum of five pillars, as outlined below:

  • Appointment of a designated compliance officer. This officer is responsible for day-to-day compliance with the BSA and AML programs and responsible for the risk assessment of each ATM.
  • AML training. Ongoing training of personnel should be conducted, informing them of their specific responsibilities within the program. The training should also include an explanation of classic money laundering techniques and activities, general Bitcoin ATM risks, and other issues a compliance team may experience.
  • Customer Due Diligence. Operators must develop risk-based procedures for conducting customer identification and due diligence. FinCEN identifies various elements of Customer Due Diligence. This pillar states that your AML program should include policies, procedures and adequate training for employees to spot beneficial owners of a legal entity customer, verify the information, comprehend the risks related to beneficial ownership, and report any related suspicious activity.
  • Internal controls specific to your business model. Develop appropriate procedures, policies and processes specific to your business that meet all BSA requirements. Internal controls are implemented to lower the risks associated with operating Bitcoin ATMs. Multiple factors should be considered when developing internal controls, such as how to identify, report and address suspicious activity, as well as recent regulatory updates or changes.
  • Independent review and audit. Organize independent reviews of your AML program in the form of a third-party audit/testing, occurring at least once per year.
  • Before going live, it’s important for operators to test all AML controls. This can be done by conducting some sample transactions through the machines. It’s imperative to take this opportunity to ensure that the appropriate KYC processes and suspicious activity indicators are in place and functioning.

    In addition, check that customer and transaction information is properly recorded. Any issues found during testing and any relevant changes or solutions introduced to address these problems should also be recorded.

    There has been a huge stigma around Bitcoin ATMs because they are considered to be a vehicle for money laundering, with bad actors using the machines to clean cash quickly and easily. Removing this stigma and thwarting this negative reputation still remains a challenge today. However, with ATM operators following the above steps and complying with required regulation, this negative reputation can be alleviated and, hopefully, one day eradicated.

    Honest, hardworking Bitcoin ATM producers and operators can play an integral role in creating this bright future, but compliance is something that cannot be ignored. Compliance is a core foundation of the Bitcoin ATM industry and must be adhered to accordingly. Compliance is not a one-time checkbox and, therefore, should be updated regularly. It is in the interest of your users to take responsibility and to be fully compliant both at a federal and state level.

    The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

    Bo Oney is the executive vice president of operations and head of compliance at Coinsource and is a certified anti-money laundering specialist. Bo manages Coinsource’s compliance with AML/CFT regulations and the operational development of Coinsource’s proprietary Platform-as-a-Service program. The PaaS program for operators leverages the company’s state-of-the-art technology and industry-standard best practices to form a robust, innovative program leading the way to the future of financial services transactions.

    Source: blog.total.exchange

    Author: by Total Exchange


    Ethereum built Crypto Price Index launches in UAE

    Ethereum built Crypto Price Index launches in UAE

    Crypto Price Index , a platform built on Ethereum, is an emerging Decentralised Finance (DeFi) project which aims to allow users to participate in the crypto markets in a stable and less volatile manner. CPI achieves this via an index coin linked to the average value of the top 200 crypto assets. The startup is based in the United Arab Emirates (UAE), is offering those interested in cryptocurrencies choices through its Crypto Price Index which can be achieved through its native CPIX token.  Through this token ecosystem, users can gain broad exposure to the cryptocurrency industry as a whole. It does not require any specific knowledge of different projects, which can certainly be appealing to onlookers.

    The Crypto Price Index is not just tracking the top 10 or 20 of crypto assets ranked by market cap. Instead, it is designed to offer token holders a massively diversified range of assets spanning the different segments of the cryptocurrency industry. 

    Accordingly the project has received support from several prominent Emirate families. For example, sitting on the CPI advisory board is His Highness Sheikh Abdullah Bin Rashed Al Sharqi, from the eminent Al Sharqi Ruling family of Fujairah as well as others mentioned on their website.

    To utilze the index users will need to obtain the CPI token. This particular token is a governance token which presents a stake in the overall Crypto price Index ecosystem. Holders of this token can reward or penalize network participants depending on their overall behavior. Different instances of the CPI tokens will exist. Users can customize the basket of currencies they want to be exposed to. For example, a CPI30 token will expose traders to 30 different cryptocurrencies.

    on July 15, 2020  Crypto Price Index released its CPI tokens to the public on the HotBitexchange. 

    Source: www.unlock-bc.com

    Author: Source: CPI Index


    No BS Crypto Price Down 5.8% Over Last 7 Days (NOBS)

    No BS Crypto Price Down 5.8% Over Last 7 Days (NOBS)

    No BS Crypto (CURRENCY:NOBS) traded down 2.2% against the U.S. dollar during the 24-hour period ending at 7:00 AM Eastern on July 25th. One No BS Crypto token can currently be purchased for about $0.0000 or 0.00000000 BTC on popular cryptocurrency exchanges. No BS Crypto has a market capitalization of $40,412.46 and $26,000.00 worth of No BS Crypto was traded on exchanges in the last day. During the last seven days, No BS Crypto has traded 5.8% lower against the U.S. dollar.

    Here’s how other cryptocurrencies have performed during the last day:

  • Crypto.com Coin (CRO) traded 1.2% higher against the dollar and now trades at $0.15 or 0.00001548 BTC.
  • Huobi Token (HT) traded up 1% against the dollar and now trades at $4.25 or 0.00044363 BTC.
  • Acash Coin (ACA) traded 0% higher against the dollar and now trades at $0.0789 or 0.00000864 BTC.
  • Maker (MKR) traded down 0.3% against the dollar and now trades at $508.85 or 0.05311218 BTC.
  • Ampleforth (AMPL) traded up 19.1% against the dollar and now trades at $2.31 or 0.00024159 BTC.
  • What cryptocurrency will become the main one in a year?
    BitcoinEthereum
  • Aave (LEND) traded 7.6% higher against the dollar and now trades at $0.31 or 0.00003237 BTC.
  • Basic Attention Token (BAT) traded 1.1% higher against the dollar and now trades at $0.26 or 0.00002742 BTC.
  • IOStoken (IOST) traded 0.3% lower against the dollar and now trades at $0.0396 or 0.00000526 BTC.
  • OKB (OKB) traded 0.4% higher against the dollar and now trades at $5.45 or 0.00056842 BTC.
  • Kyber Network (KNC) traded down 1.3% against the dollar and now trades at $1.59 or 0.00016583 BTC.
  • No BS Crypto Profile

    No BS Crypto (CRYPTO:NOBS) is a token. Its genesis date was May 4th, 2018. No BS Crypto’s total supply is 2,499,989,600 tokens and its circulating supply is 1,248,453,800 tokens. The official website for No BS Crypto is nobscrypto.com. No BS Crypto’s official Twitter account is @noBScrypto and its Facebook page is accessible here.

    Buying and Selling No BS Crypto

    No BS Crypto can be traded on the following cryptocurrency exchanges: . It is usually not currently possible to buy alternative cryptocurrencies such as No BS Crypto directly using US dollars. Investors seeking to trade No BS Crypto should first buy Bitcoin or Ethereum using an exchange that deals in US dollars such as GDAX, Gemini or Coinbase. Investors can then use their newly-acquired Bitcoin or Ethereum to buy No BS Crypto using one of the exchanges listed above.

    Receive News & Updates for No BS Crypto Daily – Enter your email address below to receive a concise daily summary of the latest news and updates for No BS Crypto and related cryptocurrencies with MarketBeat.com’s FREE CryptoBeat newsletter.

    Source: www.themarketsdaily.com

    Author: Mitch Edgeman


    Checklist for Crypto ATM Operators


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