Cybercriminals Gain $1.4B From Cryptocurrency Crimes in 2020

Cryptocurrency crimes, hacking and fraud totaled $1.4 billion in 2020. Countries such as Canada and Germany are already tightening anti-money laundering requirements.

03 June, 2020 | AtoZ Markets CipherTrace estimates that cryptocurrency crimes have reached $1.4 billion in 2020. It is the second-highest total amount in cryptocurrency crimes outpacing $4.5 billion in 2019. Most of the crypto crimes are coronavirus scams. The scammer convinces the victim to pay the crypto in exchange for PPE, drugs, or other demanding consumables.

US Bitcoin ATMs Cross-Border Transactions

CipherTrace estimated that 74% of transactions made from US-based Bitcoin ATMs (BATMs) were remitted abroad during 2019. US BATM users remitted more money to high-risk exchanges than low-risk exchanges on average. 88% of the funds were remitted overseas from US cryptocurrency ATMs to virtual currency exchanges. The number has grown exponentially over the last few years, doubling each year since 2017.

Cipher Trace CTO John Jeffries predicted that BATM would be “the focus of regulation” and emphasized the “need for more unified regulation and compliance” for future crypto ATMs.

Canada is already tightening anti-money laundering requirements. New virtual currencies regulations for Canadian firms took effect recently. The new legislation primarily impacts companies which exchange crypto for cash, and Bitcoin ATM operators will be most impacted. Bitcoin ATM operators must report all transactions worth more than $10,000, CAD. According to CoinATMradar, Canada currently has 778 crypto ATMs, which also make up nearly 10% of the world’s 7,958 terminals.

In March, German Financial Market Authority BaFin takes action against the first bitcoin ATM, KKT UG.  The regulator ordered KKT UG to cease cross-border proprietary trading. The company is a crypto service provider that allows consumers to buy and sell cryptocurrencies at ATMs.

Last week, Sberbank, Russia’s largest and oldest bank, spends over $100 million on 5,000 blockchain ATMs capable of mining cryptocurrencies. The bank also holds nearly 44% of domestic personal deposits and operates 14,200 branches and 77,000 ATMs nationwide.

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