The IRS has announced that it is investigating crypto kiosks and ATMs with concerns regarding tax evasions, as well as the possibility of money laundering, controlled substance purchase, and similar crimes.
Crypto ATMs and kiosks have become an increasingly popular method of purchasing cryptocurrencies, as well as withdrawing funds among the United States-based crypto users. However, according to a recent Bloomberg interview, the IRS has raised concerns over potential tax evasion issues that might arise from the increased use of the machines.
The IRS concerns
The problem lies in the fact that anyone can walk up to one of crypto ATMs or kiosks, deposit cash and receive BTC. Naturally, the IRS would like to know who these users are, what are their goals, where does their money come from, and so on. However, they are also interested in the owners of the kiosks, who are making money by offering their devices to the public.
They’re required to abide by the same know-your-customer, anti-money laundering regulations, and we believe some have varying levels of adherence to those regulations
The IRS is not the only agency with these concerns, according to the Investigation Chief, John Fort. Fort explained that he and his team are already collaborating with other law enforcement agencies and other allies. He also stated that the investigators are monitoring any potential unlawful activities that may come from the use of these devices.
So far, there were no public cases filed, although Fort admits that there are a few ‘open cases in inventory.’ The cases in question may or may not have a direct connection to bank accounts, according to Fort.
Crypto kiosks need to be regulatory-compliant
The number of crypto kiosks is constantly growing in many major cities throughout the US, which is concerning, considering cryptocurrencies’ potential uses in criminal activities. However, Fort admits that the situation is not exactly simple and that one of the major concerns is that these efforts might push people toward foreign exchanges.
Fort further added that the biggest issue by far concerns taxes, and that this is likely a rising threat.
Do you think that there are reasons for concern regarding the use of crypto kiosks? Add your thoughts below!
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