The UK’s Financial Conduct Authority (FCA) is cracking down on illegal crypto ATMs in the country, saying they pose a money laundering threat.
According to a May 5 statement, the regulator was working with regional police to inspect sites in Exeter, Sheffield and Nottingham. While Crypto ATMs are legal, they must be registered with the authority before use.
The financial regulator added that no crypto ATM operator was registered with it, making their activities in the country illegal.
FCA’s Executive Director of Enforcement and Market Oversight, Therese Chambers, said:
“Crypto ATMs operating without FCA registration are illegal. We will take action to stop illegal activity… As well as disrupting unregistered crypto businesses, the joint efforts have helped raise public awareness of illegally operated crypto ATMs in the UK. This is especially important as crypto products carry a high risk and are currently unregulated.”
Meanwhile, the Economic Crime Unit Manager of the South West Regional Organized Crime Unit, Peter Highway, stressed the danger posed by the crypto ATMs’ illicit operations. Highway said:
“Criminals will use crypto ATMs to launder illegally obtained funds, so we were pleased to help our colleagues at the FCA crack down on companies in the region that are displaying these machines without permission.”
According to the FCA, it is reviewing evidence gathered during the inspection. The regulator has not provided any further information on its next line of action.
Crypto ATMs in the UK
Despite their lack of permission to operate in the country, Coin ATM Radar reports that there are currently 17 crypto ATMs in the country based in Birmingham, London and Manchester.
Meanwhile, this represents a steep drop from the number as of March 2022. At the time, there were about 81 Bitcoin (BTC) ATMs/tellers in various locations around the country.
ATMs have steadily declined as the FCA began enforcing actions against illegal cryptocurrency ATM operators.
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