Can you trust that crypto ATM ❓
As crypto opportunities grow 💰 crypto scams grow right along with them 💸
You may be familiar with terms like "pump & dump" and "rug pulls" (alternatively referred to by the more graphic term "pig butchering") but most people only think of these scams in terms of investments.
But what if you're just depositing money into an crypto ATM so you can buy more of your favourite cryptocurrency?
In the UK, Olumide Osunkoya was handed a 4-year prison sentence after being found guilty of illegally operating a string of crypto ATMs. They were illegal because he chose not to register the ATMs with local regulatory authorities and he had no anti-money laundering (AML) checks in place to protect its users.
Mr. Osunkoya managed to process ₤2.6M ($4.85M CAD) in just 2 months of operation with 12-28 ATMs while actively evading authorities.
His list of crimes also included: forgery, using false IDs & money laundering
💡 Takeaway
When using any crypto ATM, make sure it's registered with the proper regulatory authorities.
In Canada, crypto ATMs have to be registered with FINTRAC as a money service business (MSB) ... but how do you know if one is registered? One way is to do the following:
1️ Use a crypto ATM locator to find an ATM.
For example, "Coin ATM Radar" (https://coinatmradar.com) lists ATMs in 5 countries. For this post, an ATM in Bolton, ON was chosen at random.
Click "View details" and you will be able to see additional info about the Operator who was, in this case, "Hodl Digital Services" (no endorsement - they are just an example).
2️ Search for the Operator name in the FINTRAC registry at https://lnkd.in/gru-3eGB
This operator was listed, has a website, is a valid MSB, and the business has been registered in Canada since 2022.
All good things to know!
If you want to read more about this case, take a look at:
👉 Lewis Silkin article: https://lnkd.in/g4r2nvvF
👉 CoinCentral article: https://lnkd.in/g3b6iJuZ
Stay safe!
