UK FCA Continues Crackdown on Illegal Crypto ATM Operations

The UK Financial Conduct Authority (FCA), has launched an ongoing crackdown on crypto ATMs. Recently, the UK's financial regulator, in cooperation with local law enforcement agencies, has taken action against such sites in Exeter, Nottingham, and Sheffield.

The FCA emphasized that no crypto ATM operator was registered with it, making their operations illegal in the country.

Therese Chambers, Executive Director of Enforcement and Market Oversight at the FCA, said: "Crypto ATMs operating without FCA registration are illegal. The action we've taken over the past few months and wider work shows that we will act to stop illegal activity."

Chambers added: "Besides disrupting unregistered crypto businesses, the joint efforts have helped raise awareness of illegally operated crypto ATMs in the UK among the public. This is especially important as crypto products are high-risk and not currently regulated. That means you should be prepared to lose all your money if you invest in them."

As early as last March, the regulator had ordered operators of those crypto ATMs in the UK to shut their machines down​. About 81 bitcoin ATMs were reported to exist in the UK at the time. As the FCA began enforcing actions against illegal crypto ATM operators, the number of these machines has now dropped to 17, located in Birmingham, London and Manchester.

Peter Highway, Economic Crime Unit Manager at the South West Regional Organised Crime Unit, stressed the danger of the illegal operations of the crypto ATMs. "Criminals will use crypto ATMs to launder illegally obtained cash, so we were pleased to assist our colleagues at the FCA in targeting businesses in the region displaying these machines without authorization," he said.