The Canadian city Vancouver has recently decided to ban the ATM for Bitcoin, as per the reports published on 5th June by a popular website. The city police are considering it as an ultimate money laundering machine, and the mayor of the city has also agreed with them and has suggested a complete ban.
As per the city police, the bad practitioners can use these ATMs as many times as they want to do the transaction and bypass the transaction fees. But the businesses and experts of the country wants federal law for this mostly unregulated sector and include Bitcoin.
The cryptocurrency ATMs are not covered under federal AML laws like other businesses for money services like traditional ATMs and loan services like Money Mart.
Although Vancouver has already regulated the usage and operation of crypto ATMs through a rule in last January, the law has warned the ordinary people to keep away from the crypto frauds. It has also enforced the operators to get a license and verify their identities.
In spite of these regulations, the city police still believe that local criminals are using these ATMs and cryptocurrencies for money laundering. They have said there had been a 300% rise in the criminal activities surrounding cryptocurrencies since 2018. They are expecting to get 840 criminal reports tied to cryptocurrencies within this year.
The Vancouver city has 76 Bitcoin ATMs, there have been various regulations imposed on them, but many of them still don’t follow the rule although the exact number of crimes tied to cryptocurrencies remains unclear.
The mayor of the city has pushed for a total ban on the cryptocurrency ATMs citing the growing number of Currency laundering cases. Both Vancouver and Richmond city has opted to keep away from the cryptocurrency ATMs, but British Columbia still wants to further investigate into the money laundering case tied to cryptocurrencies. The city staff are investigating the matter and will submit the report within 2019.
Eight people were detained in Spain last month for cryptocurrency money laundering case. The criminals were transforming fiat currency into digital assets for that they used crypto split funds and ATMs.