The
Financial Conduct Authority (FCA) has been active in identifying and disrupting
illegal crypto ATMs across the UK. Since the start of 2023, the regulatory body
has inspected 34 locations suspected of hosting these machines. The operation,
conducted in conjunction with other law enforcement agencies, has disrupted 26
illicitly operating machines.
The FCA, in
collaboration with various police units, conducted inspections at 18 suspected
sites across the UK in May and June. One such inspection in Sheffield led to
the removal of a crypto ATM after a member of the public lost £1,000 in a
failed transaction. The machine’s operator could not be contacted to resolve the matter.
In recent
years, the popularity of cryptocurrency ATMs has surged as more and more people
utilize them for purchasing and selling digital currencies like Bitcoin and
Ethereum . Nevertheless, the FCA cautions that unregistered operators might lack
the essential measures to prevent illicit activities, such as money laundering.
Steve
Smart, the Joint Executive Director of Enforcement and Market Oversight at the
FCA, issued a strong warning against the use of unregistered crypto ATMs: “If
you use a crypto ATM in the UK, you are using a machine that is operating
illegally and you may be handing your money over to criminals.”
He also
emphasized that users of these machines are not protected and could lose their
money, often with no effective communication channels to resolve any problems
with the machine’s operator. “We will continue to warn the public and take
appropriate enforcement action against unregistered crypto ATM operators,”
Smart concluded.
This
crackdown follows the FCA’s previous inspection of sites across the UK
suspected of hosting unregistered crypto ATMs. The FCA continues to warn
consumers that crypto assets are unregulated and high-risk. In the UK, crypto asset
exchange providers, including operators of crypto ATMs, must be registered with
the FCA and comply with the UK Money Laundering Regulations. Non-compliance may
result in criminal charges of up to two years in prison, a fine, or both.
In the
past, the FCA has inspected locations in many parts of England, reporting that it
has successfully blocked the operation of illegal devices in Leeds, Exeter,
East London, Nottingham and Sheffield.
FCA at the Forefront of
Crypto Regulation
In addition
to identifying unregistered and potentially dangerous businesses, the British
regulator is proactively working to increase the security of digital asset
adoption. Last week, it was announced that the Financial Services and Markets
Bill had received Royal Assent. This is the final stage at which it becomes
legal as a new Act. This is significant because it includes cryptocurrencies
and stablecoins within its scope. Crypto is now considered a regulated
financial activity.
“The
Act is central to the Government’s vision to grow the economy and create an
open, sustainable, and technologically advanced financial services sector,”
the UK government commented in an official statement.
In a
separate regulatory move, the FCA is finalizing regulations around
cryptocurrency marketing and advertising in the country, which are set to take
effect on 8 October. These proposed rules were reported as the number of crypto
holders in the UK has more than doubled in the past year.
The
cryptocurrency exchange, Binance apparently does not want to take part in these
changes. Its UK subsidiary, Binance Markets Limited, has decided to waive its local
license. This is part of the company’s broader strategy to reduce its European
presence. Binance also gave up licenses in Cyprus and the Netherlands.
The
Financial Conduct Authority (FCA) has been active in identifying and disrupting
illegal crypto ATMs across the UK. Since the start of 2023, the regulatory body
has inspected 34 locations suspected of hosting these machines. The operation,
conducted in conjunction with other law enforcement agencies, has disrupted 26
illicitly operating machines.
The FCA, in
collaboration with various police units, conducted inspections at 18 suspected
sites across the UK in May and June. One such inspection in Sheffield led to
the removal of a crypto ATM after a member of the public lost £1,000 in a
failed transaction. The machine’s operator could not be contacted to resolve the matter.
In recent
years, the popularity of cryptocurrency ATMs has surged as more and more people
utilize them for purchasing and selling digital currencies like Bitcoin and
Ethereum . Nevertheless, the FCA cautions that unregistered operators might lack
the essential measures to prevent illicit activities, such as money laundering.
Steve
Smart, the Joint Executive Director of Enforcement and Market Oversight at the
FCA, issued a strong warning against the use of unregistered crypto ATMs: “If
you use a crypto ATM in the UK, you are using a machine that is operating
illegally and you may be handing your money over to criminals.”
He also
emphasized that users of these machines are not protected and could lose their
money, often with no effective communication channels to resolve any problems
with the machine’s operator. “We will continue to warn the public and take
appropriate enforcement action against unregistered crypto ATM operators,”
Smart concluded.
This
crackdown follows the FCA’s previous inspection of sites across the UK
suspected of hosting unregistered crypto ATMs. The FCA continues to warn
consumers that crypto assets are unregulated and high-risk. In the UK, crypto asset
exchange providers, including operators of crypto ATMs, must be registered with
the FCA and comply with the UK Money Laundering Regulations. Non-compliance may
result in criminal charges of up to two years in prison, a fine, or both.
In the
past, the FCA has inspected locations in many parts of England, reporting that it
has successfully blocked the operation of illegal devices in Leeds, Exeter,
East London, Nottingham and Sheffield.
FCA at the Forefront of
Crypto Regulation
In addition
to identifying unregistered and potentially dangerous businesses, the British
regulator is proactively working to increase the security of digital asset
adoption. Last week, it was announced that the Financial Services and Markets
Bill had received Royal Assent. This is the final stage at which it becomes
legal as a new Act. This is significant because it includes cryptocurrencies
and stablecoins within its scope. Crypto is now considered a regulated
financial activity.
“The
Act is central to the Government’s vision to grow the economy and create an
open, sustainable, and technologically advanced financial services sector,”
the UK government commented in an official statement.
In a
separate regulatory move, the FCA is finalizing regulations around
cryptocurrency marketing and advertising in the country, which are set to take
effect on 8 October. These proposed rules were reported as the number of crypto
holders in the UK has more than doubled in the past year.
The
cryptocurrency exchange, Binance apparently does not want to take part in these
changes. Its UK subsidiary, Binance Markets Limited, has decided to waive its local
license. This is part of the company’s broader strategy to reduce its European
presence. Binance also gave up licenses in Cyprus and the Netherlands.
