Navigating Bitcoin ATM Compliance

Have you been thinking about the possibility of starting a Bitcoin ATM operation?  Are you hesitant because you’re unsure where to start or what to do with Bitcoin ATM compliance?  If this sounds familiar, rest assured that you are not alone. Many new operators are learning that there is more to just picking out a Bitcoin ATM.

Annual Independent Review: Your BTM Company’s Crucial Safeguard

Federal regulators can enforce drastic civil, administrative, and criminal penalties against an entity that violates AML initiatives or the Bank Secrecy Act.  Importantly for BTM companies, the applicable regulations frequently change and often omit or leave open to interpretation how BTM companies fit into the regulatory scheme.  Consequently, an independent review allows companies to properly address non-compliance, mitigate ongoing violations, and protect itself against fines and penalties.

Title 31 Examination – What to Expect as a Money Services Business

The Internal Revenue Service (IRS) is stepping up enforcement of Money Services Businesses (MSBs) and the penalties for non-compliance are hefty. In a published IRS report, it was found that in fiscal year 2016, there were 1,716 examinations of MSB’s with a total potential tax revenue of $3 billion. Fast forward to the present, and the IRS appears to be conducting more Title 31 exams in 2021 than previous years. If you operate as an MSB or provide compliance advice to companies operating as MSBs, this blog post will be informative on what to expect during a Title 31 audit by the IRS.

FinCEN’s proposed rule to make Bitcoin a Monetary Instrument

FinCEN issued a notice of proposed rule making — they gave a whole 15 days for comments — and propose to make Bitcoin and other digital currencies fall under the definition of monetary instrument. This means extra reporting for Banks and Money Service Businesses (MSBs). If the rule goes through, MSBs will need to keep a monetary instrument log, recording any transactions valued between $3,000 — $10,000.

AML & KYC for Bitcoin ATMs, What Does It Mean?

Know Your Customer or KYC is a building block of our financial structure that allows banks and non-bank financial institutions to prevent future illicit activity while also giving regulators their peace of mind. The Bank Secrecy Act, or, BSA is legislation created in...

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