Cryptocurrency ATMs in Nevada will now require a license from the Nevada Financial Institutions Division (NFID). As the state lawmakers failed to enact laws on regulating these units. The NFID has taken it upon itself to control the space.
Teri Williams, a spokesperson on the issue, told the media,
“Any entity that facilitates the transmission of or holds fiat or digital currency by way of brick-and-mortar, kiosk, mobile, internet or any other means, should contact the NFID to request a licensure determination,”
The lack of regulations or pending cases with authorities in the U.S. has confused entrepreneurs and users about cryptocurrencies. Moreover, people have found in it an opportunity to launder money and commit frauds. These ATMs provide instant cash for Bitcoins and other cryptocurrencies. Hence, they are becoming a hotspot for cashing out.
Moreover, the director of FinCEN had also warned casinos in Las Vegas, Nevada, for not reporting crimes related to virtual currencies.
Reportedly, out of 5000 crypto ATMs globally, 3000 of those are located in the U.S. These kiosks have, however, become an ideal medium for money laundering. According to a report by investigative journalist, Dana Gentry, the local authorities in Nevada are facing a lot of difficulties because of it.
Canada Facing Similar Issues
Canada has nested the growth for Bitcoin [BTC] and cryptocurrencies with lenient laws on its restrictions. However, the ATMs there too are being used for illicit activities.
Vancouver police have received numerous reports of fraud with innocent citizens and money laundering finding a way through these kiosks. Sergeant Alvin Shum of the Vancouver Police Department wrote in a report, that
“Given the lack of a central authority, there is no controlling organization who can monitor or regulate the transfer of funds to ensure a legitimate transaction,”
The mayor of Vancouver had called for a baning the machines as they are “an ideal money-laundering vehicle.”
The authorities are expected can now be expected to keep a close watch on these ATMs to track the flow of money from it. However, a ban on kiosks can hinder the growth in the space as well.
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Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com