Bitcoin ATMs experienced a tremendous increase in 2021. While there are close to 35,000 Bitcoin ATMs worldwide, 30629 of them are located in the USA.
A report released yesterday by the US Government Accountability Office (GAO) revealed that Bitcoin ATMs need more registration rules.
Crime Usage Rate of Cryptocurrency ATMs Increases
According to the report, Bitcoin ATMs play a large role as a method of receiving payments in crimes such as human and drug trafficking.
The following statements were used in the report submitted by the GAO to the US Congress:
“FBI officials expect to see an increase in the use of virtual currency ATMs for illegal purposes, including human and drug trafficking, as the use of cryptocurrencies expands.”
The organization, which investigates human trafficking activities around the world, stated that crypto money ATMs are used quite widely when crime is committed.
Since the devices in question are less regulated, it is much more difficult to monitor and identify the operations performed.
More Regulations Demand for ATMs
According to the GAO, there is a lack of information about machines and the actions taken through them. This hinders the ability of law enforcement to detect and catch criminals.
For example, while ATM owners are required to register with the Financial Crimes Enforcement Network (FinCEN), they are not required by law to disclose the location of their ATMs. According to the GAO, this limits the capacity of federal agencies to identify kiosks in areas identified as high risk for financial crime.
Authorities assess that by placing stronger regulations on crypto ATMs, they will have access to more information about their location and use that will help identify “potentially illegal transactions.”