Fintech
Could The Spike In Bitcoin ATMs Be A Goldmine For Money Launderers?
If you are a crypto fanatic, there is no doubt that you have seen a bitcoin ATM. In fact, there are high chances that you have come up close and personal with one, or even used it to make a few transactions.
Over the past few years, the number of bitcoin ATMs has grown exponentially. They have come as a blessing to crypto users since they can now make transactions with the utmost convenience. Look – whether you have the best NBA betting strategy on a cryptocurrency casino or do some tasks and get paid in bitcoin, you can always withdraw your earnings quickly in a bitcoin ATM.
But here is the problem…
As the number of bitcoin ATMs increase, crypto experts warn that they are now being used to circumvent anti-money laundering controls.
In its Spring report published early in June, Cipher Trace revealed that bitcoin ATMs are constantly used to send funds to trading platforms that are believed to facilitate money laundering and other criminal activities.
According to the report, the amount of funds sent to high-risk exchanges from bitcoin ATMs in the United States has seen a spike and has been doubling for the last three years. In 2017, the amount of funds going to high-risk exchanges was 2%, but now the figure has risen to 8%.
How bitcoin ATMs numbers have risen
The upsurge in the number of bitcoin ATMs coming to the market is mind-blowing. The Coin ATM Radar reports that there were only 5,000 BATMs in June 2019, but now the number stands at 8,300.
Between June and December of 2019, only 1,000 BATMs were installed. In the past six months, this number has doubled, and 2,000 ATMs have since gone online.
From a glance, BATMs are not different from cash-based machines. Nonetheless, they allow users to trade in bitcoin and other cryptocurrencies from an exchange using hard cash and bank cards.
BATMs users are not required to have digital wallets since the machines create them and give them printouts of private keys and wallet addresses.
Does the rise coincide with the increase in money laundering cases?
In August 2019, a trader in Los Angeles was found guilty of failing to register his bitcoin ATM business with the Financial Crimes Enforcement Network (FinCEN). He pleaded guilty for laundering a whopping $25 million for drug dealers and other criminals.
Police in Spain also reported that a criminal syndicate that was involved in international narcotics trade used bitcoin ATMs to pay their drug suppliers in Columbia.
Crypto analysts allude that the increase in money laundering activities can be attributed to the explosion in the number of bitcoin ATMs.
Laws regulating the use of BATMs are progressively being implemented. For example, in the United States, people who own a bitcoin ATM must sign up with FinCEN and are required to keep records of all transactions. They must also follow know-your-customer (KYC) protocols and report any suspicious activity to the relevant authorities.
Some providers have also imposed self-regulations. They ensure that their machines prompt the user to enter a verified purchase location and wallet address before the cryptocurrency is sent.
But even with stringent regulations, money launderers are still finding ways to circumvent them and continue to engage in their malevolent activities.
In 2019, a Financial Action Task Force (FATF) guidance dubbed ‘Travel Rule’ was passed. This means that more rigid KYC/AML requirements for cryptocurrency businesses are now implemented in all corners of the globe.
Experts agree that the use of BATMs in money laundering will improve if regulatory scrutiny is increased. Operators should also stay proactive in compliance and, at the same time, respect the privacy of their users.
Fintech
Fintech Pulse: Your Daily Industry Brief (Chime, ZBD, MiCA)
As we close out 2024, the fintech industry continues to deliver headlines that underscore its dynamism and innovation. From IPO aspirations to groundbreaking regulatory milestones, today’s updates highlight the transformative power of fintech partnerships, regulatory evolution, and disruptive technologies. Here’s what you need to know.
Chime’s Quiet Step Toward Public Markets
Chime, the U.S.-based financial technology startup best known for its digital banking services, has taken a significant step by filing confidential paperwork for an initial public offering (IPO). As one of the most valuable private fintechs in the U.S., Chime’s move could potentially signal a renewed appetite for fintech IPOs in a market that has been cautious following fluctuating valuations across the tech sector.
With a valuation that reportedly exceeded $25 billion in its last funding round, Chime’s IPO could set a new benchmark for the industry. Observers note that its strong customer base and revenue growth may make it an appealing choice for investors seeking to capitalize on the digital banking boom. However, the timing and success of the IPO will depend on broader market conditions and the regulatory landscape.
Source: Bloomberg
ZBD’s Pioneering Achievement: EU MiCA License Approval
ZBD, a fintech company specializing in Bitcoin Lightning network solutions, has made history by becoming the first to secure an EU MiCA (Markets in Crypto-Assets Regulation) license. This landmark approval by the Dutch regulator positions ZBD at the forefront of compliant crypto-fintech operations in Europe.
MiCA, which aims to harmonize the regulatory framework for crypto-assets across the EU, has been a focal point for industry players aiming to establish legitimacy and expand their offerings. ZBD’s achievement not only validates its operational rigor but also sets a precedent for other fintech firms navigating the evolving regulatory landscape.
Industry insiders view this as a strategic advantage for ZBD as it broadens its footprint in Europe. By leveraging its regulatory approval, the company can accelerate its product deployment and establish trust with institutional and retail users alike.
Source: Coindesk, PR Newswire
The Fintech-Credit Union Synergy: A Blueprint for Innovation
The convergence of fintechs and credit unions continues to reshape the financial services ecosystem. Collaborative initiatives, such as the one highlighted in the recent partnership between fintech innovators and credit unions, are proving to be a potent force in delivering tailored financial solutions.
This “dream team” approach allows credit unions to leverage fintech’s technological expertise while maintaining their community-focused ethos. Key areas of collaboration include digital payments, personalized financial management tools, and enhanced loan processing capabilities. These partnerships not only enhance member engagement but also enable credit unions to remain competitive in an increasingly digital-first financial environment.
Industry analysts emphasize that such collaborations underscore a broader trend of traditional financial institutions embracing fintech-driven solutions to bridge service gaps and foster innovation.
Source: PYMNTS
Tackling Student Loan Debt: A Fintech’s Mission
Student loan debt remains a pressing issue for millions of Americans, and a Rochester-based fintech aims to offer relief through its cloud-based platform. This innovative solution is designed to simplify loan management and provide borrowers with actionable insights to reduce their debt burden.
The platform’s features include repayment optimization tools, personalized financial education, and seamless integration with loan servicers. By addressing the complexities of student loan management, this fintech is empowering borrowers to make informed decisions and achieve financial stability.
As the student loan crisis continues to evolve, solutions like this highlight the critical role fintech can play in addressing systemic financial challenges while fostering financial literacy and inclusion.
Source: RBJ
Industry Implications and Takeaways
Today’s updates underscore several key themes shaping the fintech landscape:
- Regulatory Milestones: ZBD’s MiCA license approval exemplifies the importance of regulatory compliance in unlocking growth opportunities.
- Strategic Partnerships: The collaboration between fintechs and credit unions demonstrates the value of combining technological innovation with traditional financial models to drive customer-centric solutions.
- Market Opportunities: Chime’s IPO move reflects a potential revival in fintech public offerings, signaling confidence in the sector’s long-term prospects.
- Social Impact: Fintech’s ability to tackle systemic issues, such as student loan debt, showcases its role as a force for positive change.
The post Fintech Pulse: Your Daily Industry Brief (Chime, ZBD, MiCA) appeared first on News, Events, Advertising Options.
Fintech
SPAYZ.io prepares for iFX EXPO Dubai 2025
Leading global payments platform SPAYZ.io has confirmed it will be attending iFX EXPO Dubai 2025 on 14 to 16 January. Exhibiting at Stand 64 at Trade Centre Dubai, SPAYZ.io’s team of professionals will be on hand providing live demonstrations of its renowned payment services for payment providers. Attendees will also receive exclusive insight into SPAYZ.io’s plans for 2025 alongside early early access to its upcoming plans for the new year.
SPAYZ.io delivers a host of payment solutions that leverage the latest technological innovations and open access to the fastest growing emerging markets across Africa, Europe and Asia. Over the past year, there has been huge demand for its Open Banking and local payment method services, alongside bank transfers, mass payouts, online banking and e-wallets.
Yana Thakurta, Head of Business Development at SPAYZ.io commented: “We look forward to once again participating at iFX Dubai to expand our network of partners and clients. It’s a fantastic way to kick off the year, connecting with thousands of industry leaders from FOREX platforms to trading companies, and everything in between.
“Our key goal for iFX Dubai EXPO 2025 is to expand our portfolio of solutions and geographies. We’re using this as an opportunity to partner with like-minded entities who share our ambition to provide payment solutions that are truly global.”
Come meet SPAYZ.io’s team at the Trade Centre Dubai at Stand 64. You can also book a meeting slot with a member of a team.
The post SPAYZ.io prepares for iFX EXPO Dubai 2025 appeared first on News, Events, Advertising Options.
Fintech
Airtm Enhances Its Board of Directors with Two Strategic Appointments
Airtm, the most connected digital dollar account in the world, is proud to announce the addition of two distinguished industry leaders to its Board of Directors: Rafael de la Vega, Global SVP of Partnerships at Auctane, and Shivani Siroya, CEO & Founder of Tala. These appointments reflect Airtm’s commitment to innovation and financial inclusion as the company enters its next phase of growth.
“We are thrilled to welcome Rafael and Shivani to Airtm’s Board of Directors,” said Ruben Galindo Steckel, Co-founder and CEO of Airtm. “Their unique perspectives and proven track records will be invaluable as we continue scaling our platform to empower individuals and businesses in emerging markets. Together, we’ll push the boundaries of financial inclusion and innovation to create a more connected and equitable global economy. Rafael and Shivani bring a wealth of experience and strategic insight that will strengthen Airtm’s mission to connect emerging economies with the global market.”
Rafael de la Vega, a seasoned leader in fintech global partnerships and technology innovation, is currently the Global SVP of Partnerships at Auctane. With a proven track record of delivering scalable, impactful solutions at the intersection of fintech, innovation, and commerce, Rafael’s expertise will be pivotal as Airtm continues to grow. “Airtm has built a platform that breaks down barriers and opens up opportunities for people in emerging economies to connect to global markets. I am excited to contribute to its growth and help further its mission of fostering financial inclusion on a global scale,” said Rafael.
Shivani Siroya, CEO and Founder of Tala, is a pioneer in financial technology, renowned for empowering underserved communities through access to credit and essential financial tools. Her leadership in leveraging data-driven innovation aligns seamlessly with Airtm’s vision of creating more equitable financial opportunities. “Empowering underserved communities has always been at the core of my work, and Airtm’s mission resonates deeply with me. I’m thrilled to join the Board and work alongside such a dynamic team to expand access to financial tools that truly make a difference in people’s lives,” said Shivani.
The post Airtm Enhances Its Board of Directors with Two Strategic Appointments appeared first on News, Events, Advertising Options.
-
Fintech6 days ago
Fintech Pulse: Your Daily Industry Brief (Synapse, Shenzhen Institute, Visa, AutomatIQ, MeridianLink)
-
Fintech5 days ago
Fintech Pulse: Your Daily Industry Brief (Revolut, Bestow, Advyzon, Tyme Group, Nubank)
-
Fintech3 days ago
Fintech Pulse: Your Daily Industry Brief (Chime, ZBD, MiCA)
-
Fintech6 days ago
Asian Financial Forum returns as region’s first major international financial assembly in 2025
-
Fintech7 days ago
NASDAQ-Listed LYTUS Appoints Visionary Leader Sai Guna Ranjan Puranam as COO (Lytus Healthcare) and Group CTO (Lytus Technologies) to Revolutionize Healthcare and Technology
-
Fintech PR3 days ago
According to Tickmill survey, 3 in 10 Britons in economic difficulty: Purchasing power down 41% since 2004
-
Fintech4 days ago
Airtm Enhances Its Board of Directors with Two Strategic Appointments
-
Fintech PR2 days ago
President Emmerson Mnangagwa met this week with Zambia’s former Vice President and Special Envoy Enoch Kavindele to discuss SADC’s candidate for the AfDB