REGULATORY & ANTI-SCAM
COMPLIANCE

COMPLIANCE IS NOW THE COST OF SURVIVAL.

The physical Cash-to-Crypto industry operates under strict federal and state regulations. Robust KYC, AML, transaction monitoring, and scam prevention are no longer optional — they are prerequisites for operator licensing, banking access, and long-term viability.

THE REGULATORY FRAMEWORK
FEDERAL (BSA / AML)
  • FinCEN MSB Registration
  • BSA / AML Compliance Program
  • SAR Filing (Suspicious Activity)
  • CTRs (Cash Transactions)
  • Recordkeeping & Retention
  • Travel Rule (When Applicable)
Source: FinCEN Guidance
STATE LICENSING
  • Money Transmitter License
  • State-Specific Requirements
  • Surety Bonds / Net Worth
  • Background Checks
  • Exam Fees & Renewals
  • Ongoing Reporting
Source: State Regulators
CUSTOMER
IDENTIFICATION
  • ID Verification (Government ID)
  • Risk-Based KYC Tiers
  • Name & Address Validation
  • Enhanced Due Diligence
  • Ongoing Customer Monitoring
Source: FinCEN / Regulatory Guidance
TRANSACTION
MONITORING
  • Structuring Detection
  • Velocity / Volume Limits
  • Geolocation & IP Analysis
  • Watchlist Screening
  • Real-Time Alerts & Reviews
Source: Industry Best Practices
RECORDS &
REPORTING
  • 5+ Years Record Retention
  • SAR Filing ($2,000 Threshold)*
  • CTR Filing ($10,000 Threshold)
  • Audit & Examination Readiness
  • Regulatory Examinations
Source: FinCEN Guidance
*Per FinCEN Notice (Aug 2026)
STATE COMPLIANCE MAP
As of May 31, 2026 i
Full Licensing Required
Money transmitter license,
or equivalent required.
Registration / Notice
Registration, notice filing,
or limited licensing.
Restricted / Banned
Severe restrictions or
ban on Bitcoin ATMs.
No Specific Guidance
Regulatory framework
not yet established.
United States Compliance Map
VIEW STATE-BY-STATE GUIDE →
Sources: State Regulators, NCSL, Industry Reports
ANTI-SCAM WARNING
NEVER USE A BITCOIN ATM BECAUSE SOMEONE TELLS YOU TO.
Scammers impersonate trusted institutions and pressure victims to send cash via Bitcoin ATMs.
Common Scam Tactics
Government
Impersonation
(IRS, Police, FBI)
Tech Support
Scams
Utility or Bank
Threats
Romance or
Investment Scams
Lottery or Prize
Fraud
Red Flags at the Kiosk
✓ Someone called or messaged you asking you to send cash.
✓ You were asked to withdraw cash and deposit it.
✓ You were told to keep it a secret.
✓ You're not sure why you are sending the money.
✓ You were promised a refund, prize, or to avoid arrest.
IF YOU THINK YOU ARE BEING SCAMMED, STOP.
Do not send the money. Contact local law enforcement.
THE COST OF COMPLIANCE
As of May 31, 2026
$25K – $150K+
Annual Compliance
Operating Cost
(Per Operator)
3 – 12+
FTEs Dedicated
to Compliance
Functions
10% – 30%
Revenue Impact
from Compliance &
Risk Controls
Critical
For Banking,
Partnerships &
Survival
ENFORCEMENT IS INTENSIFYING
As of May 31, 2026 i
100+
Enforcement Actions
Against Crypto ATM
Operators Since 2022
Source: FinCEN / DOJ
$24M+
Total Penalties
Imposed
Source: FinCEN / State AGs
50+
Licenses Denied,
Suspended or
Revoked
Source: State Regulators
Increasing
Regulatory Exams,
Audits & On-Site
Inspections
Source: Industry Reports
COMPLIANCE RESOURCES
FinCEN Guidance
Convertible Virtual Currency
Kiosk Operators Notice
View Guidance →
FinCEN Registration
MSB Registration Portal
(001, BSA E-Filing)
Visit FinCEN →
State Licensing
Money Transmitter
License Directory
View Directory →
NCSL Legislation Tracker
State Crypto / Digital Asset
Legislation Tracker
View Tracker →
Anti-Scam Resources
Consumer Alerts &
Fraud Prevention
View Resources →