FCA Cracks Down On Unregistered Crypto ATMs

Updated: 14 February 2023

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What– the UK financial watchdog, Financial Conduct Authority (FCA), cracks down on unregistered crypto automated teller machines (ATMs)
Why– This comes as the financial regulator and the cyber team at West Yorkshire Police suspected the provision of illegally operated crypto ATMs.
What next– The FCA has noted that the crypto asset exchange providers in the United Kingdom must be registered and comply with the UK Money Laundering Regulations.

The United Kingdom’s financial watchdog, FCA, has dived to inspect unregistered crypto ATMs. This is after the financial regulator teamed up with the West Yorkshire Police to probe various sites across the city of Leeds, in the North of England, which are suspected of providing illegally operated crypto ATMs.

Further, the financial regulators revealed that no crypto ATM operators in the UK had recently obtained the FCA registration. Notably, they stipulated that the crypto asset exchange providers in the UK must be registered with the financial regulators. Nonetheless, the crypto ATMs should align with the UK Money Laundering Regulations. Mark Steward, Executive Director of Enforcement and Market Oversight at FCA, noted that:

Unregistered Crypto ATMs operating in the UK are doing so illegally. We will continue to identify and disrupt unregistered crypto businesses in the UK.

Further, Steward noted that crypto products are currently ”unregulated and high-risk.” He further gave a warning to investors that they should get ready to lose their money if they invest in the crypto products. On the other hand, detective sergeant Lindsey Brants stipulated that” multiple warning letters have been issued requesting the operators to cease using the machines. Any breach of regulations would lead to a probe under money-laundering regulations.”

Crypto platforms registered by FCA

According to Coin ATM Radar, at least 28 locations enable the provision of Bitcoin ATMs in the United Kingdom. Last year, FCA launched over 300 cases on crypto firms that had failed to acquire registration in the UK. At the time of writing, FCA had registered 41 crypto platforms, including eToro and Gemini.