Chief John Fort, an agency official at the Internal Revenue Service shared with Bloomberg Law that the agency’s criminal investigators are “very” focused on the tax issues surrounding Bitcoin ATMs and kiosks. Fort also indicated that the team is working with officers and law enforcement partners to police illicit activity concerning the technology.
He further shared with Bloomberg Law during a blockchain conference that the agency is looking into kiosks and ATMs that are not just connected to bank accounts. The machines are present in many major cities in the United States and they permit users to convert fiat currency to a type of cryptocurrency.
Fort added that these machines must follow know-your-customer and anti-money laundering regulations. There appears to be compliance issues with these rules as well.