BlockBeats news, September 1, according to the latest report from TRM Labs, due to the general lack of strict KYC and AML protocols, crypto ATMs are more vulnerable to fraud and money laundering, and have processed at least $160 million in illegal funds since 2019.

In 2023 alone, the proportion of illegal transactions processed by cryptocurrency ATMs reached 1.2% of their total transaction volume, while the proportion of illegal transactions in the entire crypto ecosystem was only 0.63%. The report also showed that more than $30 million in illegal funds in 2023 were related to known scam addresses, highlighting the role of crypto ATMs in facilitating fraud schemes.

This discovery comes at a time when regulators around the world are stepping up their scrutiny of the cash-to-cryptocurrency sector. In Germany, authorities recently seized 13 unlicensed Bitcoin ATMs and confiscated nearly 250,000 euros in cash.