To prevent money laundering related issues, Vancouver, one of the popular Canadian cities, is looking at the option of issuing a blanket ban on Bitcoin (BTC) automated teller machines (ATMs).
Kennedy Stewart, mayor of Vancouver, has recommended a total prohibition on Bitcoin ATMs on the basis of a rise in the number of money laundering cases.
Next Web has quoted a police report has pointed out that criminals could invest a few thousand dollars and install a Bitcoin ATM for their own personal requirements such as converting their cash to Bitcoin several times for their illicit operations.
Furthermore, the documents has highlighted that criminals will also avoid paying any transaction fees by owning a Bitcoin ATM.
Authorities supposedly anticipate receiving 840 study reports related to cryptocurrency in 2019, thrice the number received last year. On the basis of reports, Richmond and Vancouver city are moving forward to implement certain rules and limitations, while the province of British Columbia has ordered an enquiry into money laundering to gain clarity on the issue.
As per CoinATMRadar, an online portal monitoring the crypto industry, there are 694 crypto ATMs in Canada with 76 in Vancouver. In May, eight people were taken to custody for alleged money laundering, which involved exchange of fiat currency to crypto currencies.
The arrested individuals had reportedly utilized cryptocurrency ATMs to turn the funds into smaller amounts and bring back into the financial system, thereby avoiding red flags being raised by the institutions handling the money.
Back in January, the US Bitcoin ATM operator Coinme, the first Bitcoin ATM operator to obtain a license in the US in 2014, has collaborated to offer Bitcoin at Coinstar owned coin counting kiosks.
