UK FCA Takes Action Against Unregistered Crypto ATMs

The Financial Conduct Authority (FCA) has ramped up its efforts to crack down on unregistered crypto ATMs in the UK.

The financial regulator recently announced that it worked with local authorities to conduct raids on suspected unlicensed crypto ATMs in Exeter, Nottingham, and Sheffield.

This enforcement action follows similar operations in East London and near Leeds in February and March, respectively. The FCA claims that it has issued warnings or cease-and-desist letters to suspected crypto ATM operators in these areas.

In a statement, Therese Chambers, Executive Director of Enforcement and Market Oversight of FCA warned that “Crypto ATMs operating without FCA registration are illegal.

We will act to stop illegal activity.” Chambers further stated that these joint efforts have helped raise awareness of illegally operated crypto ATMs in the UK. She added that crypto products are high-risk and not currently regulated.

The inspections conducted by FCA officials were authorized under the UK’s Money Laundering Regulations from 2017. The regulator has stated that it intends to analyze the material obtained and consider taking further action if necessary.

Peter Highway, the Economic Crime Unit Manager at the South West Regional Organized Crime Unit, highlighted the dangers of unlawful crypto ATM activities, stating that criminals use these machines to launder illegally obtained cash. He praised FCA’s efforts to target businesses displaying these machines without authorization.

According to CoinATMRadar data, the number of crypto ATMs in the UK has fallen to 17, operated by entities such as Big Sea Coins, BD ATMs, Cryptobitecoin, and Computer House. It is unknown if any of these ATMs are registered under the FCA.