The cryptocurrency ATM industry is encountering increased regulatory scrutiny following a $10 million money laundering case involving Firas Isa and Virtual Assets LLC. This case has highlighted significant compliance challenges, particularly in monitoring and reporting suspicious activities. As a result, compliance costs are rising, exacerbated by inefficiencies in manual processes and false positives. In response, platforms like SEON and 0xbow are adopting advanced anti-money laundering (AML) frameworks to mitigate risks. SEON provides real-time fraud prevention tools that are adaptable across various jurisdictions, while 0xbow employs zero-knowledge proofs for privacy-compliant transaction monitoring. These innovations underscore the industry's focus on balancing technological advancement with regulatory compliance.