New Jersey’s self-determining watchdog on public corruption, financial waste, and organized crime believes that crypto ATMs are still lacking adequate regulations, and thus, poses an immediate threat to the public. As per Wednesday’s report of the New Jersey State Commission of Investigation (SCI), the operations of crypto-based ATMs are still devoid of any state regulation.
SCI’s report emphasized that some of the ATM’s transactions appeared to be particularly organized wherein some of its users may bypass its requirements, such as presenting valid identification or abiding with specific federal currency reporting laws. To mitigate this, the watchdog recommends some form of “licensing mechanism,” perhaps a government issued ID requirement before anyone could access the ATMs. With that, the New Jersey watchdog believes that instances of fraud or any misconduct correlating to crypto ATMs would drastically go down.
Another enticing recommendation is from the state’s investigator. According to the investigator, updating the present regulations to expand the period an individual’s records are kept from the standing one-year requirement period can do wonders to regulate such ATMs better. On top of that, the investigator also recommends for the same standards currently in place on businesses to exist just the same for banks.