tl;dr
Bitcoin ATMs are facing regulatory crackdowns globally due to their use in facilitating scams and criminal activities. Governments in various countries, including New Zealand, Australia, the United Kingdom, and the United States, are taking action to restrict these kiosks. Recent developments, such ...
Bitcoin ATMs are facing regulatory crackdowns globally due to their use in facilitating scams and criminal activities. Governments in various countries, including New Zealand, Australia, the United Kingdom, and the United States, are taking action to restrict these kiosks. Recent developments, such as a court sentencing and the passing of new bills in Nebraska, indicate a growing trend of regulatory scrutiny. This heightened attention may tarnish the reputation of Bitcoin ATMs and lead to potential industry-wide consequences.
Bitcoin ATMs, an oft-overlooked onramp to the crypto space, are facing regulatory crackdowns across the globe. These kiosks have been used to facilitate massive scams in recent months, and several jurisdictions are looking to restrict them. Earlier today, law enforcement from New Zealand claimed that it “urgently” requires more information about Crypto ATMs. In a National Risk Assessment, the New Zealand Police mentioned these devices 30 times. It claimed that Crypto ATMs are used in fraud, drug trafficking, money laundering, extortion, and more. Neighboring Australia announced its own ATM crackdown last December. Across the ocean, other Western nations have joined the effort. In previous years, the United Kingdom has launched crackdowns of unregistered Crypto ATMs, and initiatives may be starting again.
Recently, a court in London sentenced a man to four years in prison for running unregistered ATMs, which the presiding judge called “an extremely serious offense.” In Scotland, a local police department may also be laying the groundwork for an anti-ATM crackdown. Glasgow’s police department warned the town’s citizens about potential scammers. The warning listed several ways that nefarious actors may convince a victim to withdraw their assets or otherwise steal them outright.
One incident in Nebraska is particularly concerning. Although the state government isn’t planning a full crackdown on Crypto ATMs, its governor recently signed a bill that tightens regulations against them. This new law introduces transaction limits, licensing, and reporting requirements, requires kiosks to appoint compliance officers, and more. “Cryptocurrency is an important, emerging industry, and we’ve been working hard to build Nebraska into a cryptocurrency leader. An important part of these efforts is to make sure that we have guardrails to prevent criminals from taking advantage of Nebraskans. We look forward to continuing to lay the groundwork for a safe and robust crypto industry,” claimed Governor Jim Pillen.
Although Donald Trump’s Presidency has aligned his party with the crypto industry, there is noticeable dissent in the ranks. Nothing Pillen has done has already signaled a crackdown on Crypto ATMs, but it shows that politicians may act against the industry. All this is to say, Crypto ATMs may be in the crosshairs of a worldwide crackdown going forward. None of these incidents alone shows an immediate desire to curtail this industry. However, on all of them, Bitcoin ATMs are being singled out for alleged criminal activities. If these kiosks get a worldwide association with crime, it may cause irreparable harm to their reputation.