The Financial Conduct Authority (FCA), the top financial regulator in the UK, has taken further action against unregistered cryptocurrency ATMs in East London in collaboration with the Metropolitan Police, the largest police force in the UK. The FCA has widened its crackdown on unauthorized crypto ATMs, following a series of raids conducted with the West Yorkshire Police on several sites suspected of hosting unregistered crypto ATMs around Leeds.
The FCA has used its powers to inspect several sites in East London suspected of hosting illegally operating crypto ATMs, as it continues its crackdown on the illicit sector. According to the regulator, “crypto products are not currently regulated, and they are high risk.” Mark Steward, Executive Director of Enforcement and Market Oversight at the FCA, warned that anyone investing in them should be prepared to lose all their money. Steward emphasized that crypto ATMs operating without FCA registration are illegal and, as today shows, the FCA will take action to stop this.
The FCA further said that it is currently working with the National Economic Crime Centre “to plan and coordinate action with law enforcement partners against operators of illegal crypto ATMs.” The FCA regularly warns consumers that crypto assets are “unregulated and high-risk.” In the UK, businesses offering crypto services, including crypto ATM operators, must be registered with the FCA and comply with the UK money laundering regulations. The FCA announcement clarifies that there are currently no crypto ATM operators registered with the FCA, which they must be to operate legally.
The crackdown on unregistered crypto ATMs is part of the FCA’s wider campaign against cryptocurrency-related fraud, scams and other financial crime. In the past, the regulator has issued warnings about the risks of investing in cryptocurrencies and ICOs, and has taken action against fraudulent or unregistered crypto companies operating in the UK.
The FCA’s action against illegal crypto ATMs comes amid growing concerns about the use of cryptocurrencies in money laundering and other criminal activities. Earlier this year, the UK government announced plans to introduce new regulations for cryptocurrencies, including requirements for crypto exchanges to conduct customer due diligence and report suspicious activity to the authorities.
Crypto ATMs have been a growing trend in the UK, with the number of machines increasing significantly in recent years. According to Coin ATM Radar, there are currently over 280 crypto ATMs operating in the UK, most of them in London. The machines allow users to buy and sell cryptocurrencies, such as Bitcoin, in exchange for cash.
The FCA’s crackdown on unregistered crypto ATMs is likely to have a significant impact on the cryptocurrency industry in the UK, as it could lead to the closure of many machines and operators. It is also expected to increase the regulatory scrutiny of the industry and may lead to more stringent regulations in the future.
In response to the FCA’s action, some industry experts have called for clearer regulations for the cryptocurrency industry, arguing that the lack of clear guidelines is causing confusion and making it difficult for legitimate businesses to operate. They also point out that the FCA’s action may push more cryptocurrency-related activities underground, making it harder for authorities to monitor and regulate the industry.
Overall, the FCA’s crackdown on unregistered crypto ATMs is a significant development in the UK’s efforts to regulate the cryptocurrency industry and combat financial crime. As the use of cryptocurrencies continues to grow, it is likely that we will see more regulatory action in this area in the coming years.