UK FCA To Close Down Unlicensed Crypto ATMs
The Financial Conduct Authority (FCA), the financial regulator in the United Kingdom, is pursuing unregistered crypto automated teller machines (ATMs). Meanwhile, the regulator and the West Yorkshire Police cyber team are targeting several locations suspected of harboring unlawfully operated crypto ATMs in and around Leeds city.
UK’s FCA Goes Hot On Unregistered Crypto ATM Providers
When declaring the news, the FCA stressed that no crypto ATM operator in the country possesses FCA registration. The FCA announced that all crypto firms, including BTC ATM operators, must obtain FCA registration.
In addition, they are to adhere to the UK’s money laundering guidelines. Mark Steward, the executive director of enforcement at the FCA, argued that all unlicensed cryptocurrency ATMs offering crypto exchange services operate illegally.
According to Steward, the FCA will keep clamping down on unregistered crypto firms in the UK. In addition, the executive argued that digital currencies are high-risk and unregulated. Therefore, he warned investors to be cautious while dealing with crypto, so they do not lose all their funds.
Interestingly, Lindsey Brants, a detective sergeant for the UK police, said the police had given numerous warnings to unregistered crypto ATM owners, asking them to cease operations.
“Any breach of regulations would result in an investigation under money-laundering regulations,” he added.
The FCA’s measure would impact many ATM operators against cryptocurrency ATMs. Coin ATM Radar’s information shows that there are no less than 28 sites in the United Kingdom with crypto ATMs.
FCA Registers Only 41 Crypto Firms
According to data, over 50% of these cryptocurrency ATM locations are in London, with supplementary sites found nearby Nottingham, Manchester, and Birmingham. Meanwhile, the recent clampdown on cryptocurrency ATMs is not the FCA’s first action in the United Kingdom.
Last March, the agency released a comparable statement regarding the shutdown of crypto ATMs in the nation. The FCA urged ATM operators to cease operations, warning that they would face strict actions.
Currently, the FCA has granted 41 crypto companies in the UK crypto license. Some registered firms include Revolut, Zodia Custody, Bitpanda, Gemini, and others.
Besides, the agency noted last month that over 300 firms had submitted applications for regulatory approval. However, the FCA said most of these firms did not meet its minimum requirement for KYC, AML (Anti-Money Laundering), and CTF (Counter-Terrorist Financing) regulations.
The UK FCA has affirmed that it is partnering with other regulatory agencies worldwide, particularly the US commodities regulator and the US securities regulator, to reinforce regulations where required.
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