The Financial Conduct Authority (FCA), the UK’s financial regulator, has decided to target illegal crypto ATMs. It turns out that not all crypto ATMs currently present in the UK are subject to registration. The FCA is serious about getting them to comply with the law, taking action against them. Here is what it is.
The FCA wants to force ATMs to comply with the law
Together with the West Yorkshire Police Cyber Team, the UK FCA is cracking down on illegal crypto ATMs. She considers any crypto ATM not registered with her to be illegal. She announced on February 14 that there is precisely no ATMs currently in compliance with the law. Mark Steward, executive director of the FCA’s Enforcement Division, issued a statement. He asserted: “Unregistered crypto ATMs operating in the UK are doing so illegally“.
That said, the British authorities have already taken measures against many sites in the Leeds area. The targeted sites are suspected of hosting illegally operated crypto ATMs. Several warning letters have been sent to crypto ATM operators. The documents state that they must stop using these devices. Police Detective Sergeant Lindsey Brants supported : “Any violation of the regulations would result in an investigation under the Money Laundering Act“.
Mark Steward made it clear that FCA won’t stop cracking down on unregistered crypto businesses. He added that crypto products are “currently unregulated and at high risk“. He cautioned investors, saying they should be ready to lose their money before getting into crypto.
The UK regulator has urged all crypto exchange service providers to register with them. It also asks them to comply with UK money laundering regulations. In addition, the new FCA measures could have repercussions for a significant number of operators. That said, Coin ATM Radar reveals that there are at least 28 bitcoin (BTC) ATM locations in the UK. Also, more than 50% of these crypto ATMs are found in London. Other crypto ATMs are in operation near Manchester, Birmingham and Nottingham.
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