UK FCA To Take Action Against Illegal Cryptocurrency ATMs

The Financial Conduct Authority (FCA) has exercised its authority to search and examine multiple sites suspected of harboring unlawfully run cryptocurrency ATMs in Leeds.

Regulatory authority gathered proof from sites across the city in collaboration with West Yorkshire Police’s Digital Intelligence and Investigation Unit.

The Financial Conduct Authority (FCA) also reminded of its previous warning that every crypto ATM participates in illegal activity.

Mark Steward, Executive Director of Enforcement and Market Oversight of FCA, made the statement:

‘Crypto businesses operating in the UK need to be registered with the FCA for anti-money laundering purposes. However, the authorities currently do not regulate crypto products themselves, making them high-risk, and if you invest in them, you should be ready to lose all your money.

The banking regulator and West Yorkshire Police have teamed up to confront cryptocurrency ATM operators in Leeds, northern England. The police force’s cyber unit has discovered “many live crypto ATMs” but has not provided their number or locations.

West Yorkshire Police’s Detective Sergeant Lindsey Brants stated:

Warning letters were issued requesting the operators desist using the machines and that any breach of regulations would result in an investigation under money-laundering regulations.

FCA Manages Operations With Police To Trace Illegal Cryptocurrency ATMs

The FCA works with law enforcement partners, including local police, to stop illegal Crypto ATMs. Before this, the FCA had warned all operators and hosts about the consequences of not registering with them.

Additionally, the FCA requires any UK business offering services related to cryptocurrencies to register with them. The Link will adhere to anti-money laundering and counter-terrorist financing legislation.

Related Reading | Nigeria Limits ATM Cash Withdrawals To Force CBDCs

The regulatory authority had previously warned that crypto asset firms had no authority to install ATM services. As a consequence, authorities consider all cryptocurrency ATMs in the country illegally.

Crypto ATM Installation In the United Kingdom

As per the Coin ATM Radar data, there are at least 28 Bitcoin ATM locations in the UK. The FCA’s crackdown on crypto ATMs could impact many ATM operators. The majority of these crypto ATMs are located in London, with additional locations in proximity to Birmingham, Manchester, and Nottingham.

The regulator advised that all crypto firms must register with the FCA for anti-money laundering reasons. Nevertheless, crypto assets are presently unregulated and high-risk, and individuals should be ready to incur a complete loss of invested funds.

This article conveys general information and the opinions expressed should not be considered personal advice for any individual or specific security or investment product.

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