According to the FCA, all crypto ATM operators in the UK are currently illegal as none of them are registered with the regulator.
The UK’s financial regulator, the Financial Conduct Authority (FCA), is coming for unregistered cryptocurrency ATMs.
The FCA’s cyber team and West Yorkshire Police have taken action against a number of sites in and around the city of Leeds suspected of hosting illegally operated crypto ATMs.
Announcing the news on February 14, the FCA stressed that no crypto-currency ATM operator in the UK has FCA registration. The authority says that all crypto exchange providers, including crypto ATM operators, must register with the FCA and comply with UK money laundering regulations.
“Unregistered crypto ATMs operating in the UK make it illegal,” FCA chief enforcement officer Mark Steward said, adding that the regulator would continue to crack down on unregistered crypto businesses in the country. . The executive also noted that crypto products are “currently unregulated and high risk,” warning investors to be prepared to lose all their crypto money.
According to police Detective Sergeant Lindsey Brants, local officials have issued several warning letters to crypto ATM operators, asking them to cease and desist from using the machines. “Any violation of the regulations will lead to an investigation under the money laundering regulations,” he added.
The FCA’s action against crypto ATMs will apparently affect many ATM operators, as there are at least 28 locations that provide Bitcoin
BTC
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$23,731
UK ATMs, according to data from Coin ATM Radar. More than 50% of these crypto ATMs are located in London, with additional locations near Birmingham, Manchester and Nottingham, the data shows.
The latest attack on crypto ATMs in the UK is not the first action taken by the FCA. In March 2022, the same authority issued a similar statement on the termination of Bitcoin ATMs in the country, calling on ATM operators to “close or face further measures”.
At the time of writing, the FCA has registered a total of 41 crypto companies in the UK, including platforms such as Gemini, Zodia Custody, Bitpanda, Revolut and others.
