Financial institutions should be wary of illicit activity and scams involving convertible virtual currency (CVC) kiosks, popularly known as crypto ATMs, the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) said in an Aug. 4 statement.
CVC kiosks allow people to exchange fiat currencies such as the U.S. dollar for cryptocurrencies and vice versa. The machines can be used to transfer payments as well. FinCEN said it has observed that these crypto ATMs “have also been used to launder suspected drug proceeds,” according to the notice.
