Vancouver Mayor Suggests Ban on Bitcoin Atms
The authorities of Vancouver are turning against the Bitcoin ATMs due to money laundering issues, the Next Web reported on June 5.
Bitcoin ATMs are under gubernatorial pressure after a rise in criminal operations being carried through the machines, according to The Star.
Mayor Kennedy Stewart of Vancouver proposed during a latest council conference that banning Bitcoin machines was an alternative deemed to contain crypto-related fraud and money laundering. Employees of Vancouver City Hall have now been tasked with conducting research on the subject.
Reports from the Vancouver police in February may have led to the anti-crypto position. The Vancouver police stated in the study that Bitcoin ATMs were extremely efficient for money laundering by organized criminal organizations.
The report also stated that in 2017 cryptocurrency-related crimes had risen by a whooping 350 % from 2016 to 2017. With the police expecting these crime rates to increase by 300 % compared to last year.
The Calgary Police Service revealed a huge Bitcoin ATM fraud case three months ago, where the fraudsters targeted a Canadian bitcoin company and withdrew C$ 195,000 in 112 transactions across the country, the fraudsters implemented’ double-spending attacks’ on the bitcoin ATM machines. Using this method they were able to withdraw cash from the ATMs before the transactions were remotely cancelled before the transaction was processed.
Vancouver currently lacks standardization for the kinds of transactions that can be made on its ATMs. Some machines require a cell phone number and text verification for transactions over $1,000, while others push the limit to $3,000, According to industry monitoring resource CoinATMrader.
Until decisions regarding the regulation or ban of Bitcoin ATMs will be made in the fourth quarter of 2019 the machines are still been used.