November, 2019: Zachary Kelman Weighs in on Bitcoin ATM Regulation

Zachary Kelman, managing partner at Kelman PLLC, shared with Cointelegraph his predictions for the future of Bitcoin ATMs and the possibility of increased regulation in light of recent regulatory attention from the IRS.

Discussing Bitcoin ATMs inthe Cointelegraph article Zachary discussed, among other things, the firm’s experience with Bitcoin ATMs and IRS regulation.  Zachary stated “The IRS has been amenable to these [Bitcoin ATM Operator] clients and their businesses, asking for and accepting without issue the Bitcoin ATM users’ Know Your Customer (KYC) information, which is collected to the extent possible by Bitcoin ATM operators per compliance with MSB rules.”

The Cointelegraph article continued, “Kelman explained that while his firm does not expect Bitcoin kiosk owners to close down in light of this development, they do expect changes to which the kiosk operators must respond, such as collecting KYC data from any user whose transactions require Currency Transaction Reports or Suspicious Activity Reports filings… Kelman believes that the statement from the IRS will prompt users to conduct smaller transactions beneath the KYC limit. In his opinion, the IRS “will be able to greatly mitigate efforts to use cryptocurrency for large-scale federal tax non-compliance,” while small-scale tax cheats will likely stay under the radar.”

Continue reading the full article here, and stay tuned for more Kelman insights.

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