A new report has recommended that the U.S. government should step up its oversight over digital currency ATMs to curb their alleged rising usage in drug and human trafficking activities. The report by a U.S Congress-linked agency blamed the lax regulations for ATM operators, stating they make it convenient for criminals to convert illicit cash to digital currencies and then send them globally.
Digital currencies are being increasingly used for drug and human trafficking, both within the U.S. and on a global scale, the report by the U.S. Government Accountability Office (GAO) said. And while there have been several measures to counter this vice, ATMs have largely been left to operate with minimal supervision, GAO believes.
GAO is a U.S. government agency that provides auditing and investigative services for the U.S. Congress. Known as the congressional watchdog, it publishes about 900 reports annually, with most being at the request of the members of Congress and others being general annual reports on key issues.
In its report on digital currencies, GAO observed that U.S. authorities are doing the bare minimum to stamp out crime related to ATMs. While ATM operators are required to register with the Financial Crimes Enforcement Network (FinCEN), they are not required to report their specific location routinely.
“This limits federal agencies’ ability to identify kiosks in areas that have been designated as high risk for financial crimes and could involve human and…
