The Financial Conduct Authority (FCA) is taking a hard line on unregistered cryptocurrency automated teller machines (ATMs) in the United Kingdom.
The FCA and the cyber team at West Yorkshire Police have targeted several sites in and around Leeds city, which are suspected of illegally hosting crypto ATMs.
The FCA emphasizes that none of the crypto ATM operators in the United Kingdom have registered with the FCA, and all crypto exchange providers, including crypto ATM operators, must comply with U.K. money laundering regulations.
Crypto products are “currently unregulated and high-risk,” warns FCA’s executive director of enforcement Mark Steward, adding that investors should be prepared to lose all their money with crypto.
The FCA’s crackdown would affect a significant number of ATM operators in the country, with data from Coin ATM Radar showing at least 28 locations providing Bitcoin ATMs in the United Kingdom.
More than 50% of those crypto ATM locations are situated in London, with additional locations near Birmingham, Manchester, and Nottingham.
This action against crypto ATMs is not the first taken by the FCA. In March 2022, the authority issued a statement calling for the termination of Bitcoin ATMs in the country, warning ATM operators to “shut down or face further action.”
Detective Sergeant Lindsey Brants stated that local enforcement officers had issued several warning letters to crypto ATM operators, requesting that they cease and desist from using the machines.
A breach of regulations would result in an investigation under money-laundering regulations.
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