U.S. Treasury Warns Crypto ATMs Are Aiding Criminal Activity

The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has issued Notice FIN-2025-NTC1, dated August 4, 2025, warning financial institutions about the growing risks associated with convertible virtual currency (CVC) kiosks, also known as cryptocurrency automated teller machines (ATMs), in a major step to strengthen AML and countering the financing of terrorism (CFT) efforts.

These devices, which facilitate the exchange of fiat currency for virtual assets and vice versa, offer consumers a streamlined interface for accessing blockchain-based assets.

However, FinCEN emphasizes that their convenience is increasingly exploited by illicit actors, including fraudsters and transnational criminal organizations (TCOs), to perpetrate scams, launder drug proceeds, and enable other forms of financial crime.

The notice underscores that non-compliant CVC kiosk operators, often failing to adhere to Bank Secrecy Act (BSA) obligations as money services businesses (MSBs), exacerbate these vulnerabilities by neglecting customer identification, transaction monitoring, and suspicious activity reporting ...