The UK’s financial regulator, the FCA, has closed down 26 cryptocurrency ATMs this year as part of a joint investigation with other law enforcement agencies.
The FCA, the financial regulator in the UK, has closed down 26 out of 34 crypto ATMs that it examined since the beginning of this year.
Through a collaborative investigation involving multiple law enforcement agencies and utilizing money laundering regulations, the FCA in the UK has effectively disrupted and closed down 26 cryptocurrency ATM sites that it examined since the beginning of 2023.
FCA’s Message: Comply with Regulations or Face Closure:
Earlier this year, the FCA issued a warning to all unlawful ATM operators, urging them to adhere to its regulations or dismantle their operations.
Following this injunction, the regulator conducted inspections of 36 crypto ATM sites located in Exeter, Nottingham, and Sheffield. These inspections revealed that the sites were operating without proper FCA registration.
#Crypto ATMs operating without FCA registration are illegal. The action we’ve taken over the past few months and wider work shows that we will act to stop illegal activity. #cryptocurrency https://t.co/KnMhiKAt21
— Financial Conduct Authority (@TheFCA) May 5, 2023
Steve Smart, the FCA’s joint executive director of enforcement and market oversight, strongly criticized the operation of all cryptocurrency ATMs and cautioned users about the risks associated with utilizing unregistered ATMs.
He emphasized that using a crypto ATM in the UK means engaging with an illegal machine, potentially putting users at the risk of handing their money over to criminals.
Smart also emphasized that individuals using illegal ATMs would not receive any protection from the UK government or ATM operators.
He further stated that the FCA would persist in warning the public about the risks involved and take necessary enforcement measures against unregistered crypto ATM operators.
UK Implements Strong Measures Against Crypto ATMs:
Cryptocurrency ATMs have become increasingly popular as they enable users to exchange cryptocurrencies like Bitcoin and Ethereum for cash.
However, the FCA has expressed concerns about illegal crypto ATMs, which it considers to be high-risk and potentially involved in facilitating illicit activities like money laundering. In response, the FCA has collaborated with the National Economic Crime Centre to develop and implement a coordinated plan to address the issue of illegal ATMs.
Mark Stewart, the Executive Director of Enforcement and Market Oversight at the FCA, stated that crypto ATMs operating without FCA registration are illegal, and the FCA will take action to halt their operations. He highlighted that this recent operation, combined with the previous action in Leeds, sends a clear message about the FCA’s commitment to identifying and disrupting unregistered crypto businesses in the UK.
Stewart emphasized that crypto products are currently unregulated and carry high risks. Investors should be aware that investing in them could result in a complete loss of their money.
The regulator issued multiple warnings to unregistered ATM providers, instructing them to cease their operations without delay. The FCA emphasized that failure to comply with these directives would lead to legal proceedings being initiated against them.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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