The UK financial regulator, the Financial Conduct Authority (FCA), is coming after unregistered cryptocurrency ATMs.
The FCA and the West Yorkshire Police cyber team have taken action against several sites in and around the city of Leeds suspected of hosting illegally operated cryptocurrency ATMs.
Announcing the news on Feb. 14, the FCA emphasized that no cryptocurrency ATM operator in the UK has FCA registration. The authority stated that all cryptocurrency exchange providers – including ATM operators – must be registered with the FCA and comply with UK money laundering regulations.
“Unregistered cryptocurrency ATMs operating in the UK are doing so illegally,” stated Mark Steward, executive director of the FCA’s watchdog unit, adding that the regulator will continue to dismantle unregistered cryptocurrency businesses in the country. The executive also noted that cryptocurrency products “they are currently unregulated and high risk,” warning investors to be prepared to lose all their money with cryptocurrencies.
According to Police Detective Sergeant Lindsey Brants, local officers have sent several warning letters to cryptocurrency ATM operators, asking them to cease and desist using the machines. “Any violation of the regulations would trigger an investigation under the money laundering regulations,” added.
The FCA’s action against cryptocurrency ATMs would apparently affect a notable number of ATM operators, as there are at least 28 locations offering Bitcoin (BTC) ATMs in the UK, according to data from Coin ATM Radar. More than 50% of these cryptocurrency ATMs are situated in London, with others near Birmingham, Manchester and Nottingham, the data shows.
However, the latest attack on cryptocurrency ATMs in the UK is not the first such action taken by the FCA. In March 2022, the same authority issued a similar statement on ceasing Bitcoin ATMs in the country, calling on ATM operators to “shut down or face further measures.”
As of press time, the FCA has issued registration to a total of 41 cryptocurrency companies in the UK, including platforms such as Gemini, Zodia Custody, Bitpanda and Revolut, among others.
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