The UK’s Financial Conduct Authority (FCA) has cracked down on illegal cryptocurrency ATMs in the country, saying they pose a money laundering threat.
According to May 5th statement, the regulator worked with local police to inspect sites in Exeter, Sheffield and Nottingham. Crypto ATMs are legal, but must be registered with authorities before operating.
The financial regulator added that the crypto ATM operator is unregistered and illegal to operate in the country.
Therese Chambers, FCA’s Executive Director of Execution and Market Surveillance, said:
“Cryptocurrency ATMs operating without FCA registration are illegal. It has helped raise public awareness of crypto ATMs operating illegally in the UK. This is particularly important as crypto products are high risk and currently unregulated.”
Meanwhile, Economic Crime Unit Manager of the Southwestern Regional Organized Crime Unit, Peter Highway, highlighted the dangers of illegal operation of cryptocurrency ATMs. Highway said:
“Criminals use crypto ATMs to launder illegally obtained cash, so we are pleased to help our colleagues at FCA target businesses in the region who are displaying these machines without permission.”
The FCA said it was reviewing evidence gathered during the inspection. The regulator did not provide further information on its next course of action.
Crypto ATM operations in the UK
Despite not having a license to operate in the country, Coin ATM Radar reports that there are currently 17 crypto ATMs in the country. in Birmingham, London and Manchester.
On the other hand, it represents a sharp decline from March 2022. At that time, there were approximately 81 Bitcoin (BTC) ATMs/tellers in various locations across the country.
ATMs are steadily declining as the FCA begins taking action against illegal crypto ATM operators.
A post about the UK FCA taking action against illegal crypto ATM operators first appeared on CryptoSlate.
