The Cryptocurrency Compliance Cooperative is a collaborative association that advocates on behalf of the cash-to-cryptocurrency industry to establish universally accepted compliance standards, Know Your Customer (KYC)/Anti-Money Laundering (AML) best practices, and Economic Sanctions and regulatory controls.
We aim to legitimize the cash-to-cryptocurrency industry through the advancement of compliance standards among respected Bitcoin ATM operators, regulatory agencies, traditional financial institutions, and technology solutions.
Our organization fosters an environment of collaboration and beneficial discussion between the parties within the cash-to-cryptocurrency industry, to nurture legitimacy and acceptance of digital assets.
Since 2014, when Bitcoin ATMs and other cash-to-cryptocurrency point-of-sale products first appeared in the United States, they have existed in a regulatory environment designed to oversee traditional money transmission services like Western Union, MoneyGram, and Ria at physical locations. However, the risks associated with cash-to-cryptocurrency transactions are not identical. As a result, cash-to-cryptocurrency providers with AML controls based on historical guidance for traditional MSBs have created an environment with the potential to be easily exploited by nefarious actors.
There is little barrier of entry into the Bitcoin ATM industry due to the cash-to-cryptocurrency compliance landscape. Compliance standards can be easily satisfied by implementing minimalistic template controls, including relaxed Know Your Customer (KYC) standards, baseline Anti-Money Laundering (AML) monitoring, and limited fraud prevention controls. Increased adoption of insufficient compliance practices has resulted in an industry with a significant number of cash-to-cryptocurrency providers that lend themselves to laundering illicit funds, participation in nefarious actions, and customer victimization.
As blockchain forensic tools gained prominence and sophistication in recent years, the expectation that Bitcoin ATM providers would utilize these tools to detect and report illicit transactions has not been fulfilled. To maintain a stable industry and combat illicit financing, cash-to-cryptocurrency providers must abide by a higher standard of compliance that adequately mitigates the known risks associated with cash-to-cryptocurrency operations.