FCA Targets Illegal Crypto ATM Operators in UK
The U.K. Financial Conduct Authority (FCA) has taken action against unregistered crypto ATMs as the country works to regulate crypto assets.
The United Kingdom is on a mission to become a global crypto hub, rapidly moving towards regulating the asset class. But in the meantime, the country needs to track down the illegal activity around the ecosystem.
Last year, the U.K. announced a special crypto cell to deal with blockchain-based crimes. The FCA recently announced imprisonment for up to two years for not complying with its new rules for crypto advertising.
Today, it announced another operation to inspect unregistered crypto ATM operators in Leeds, West Yorkshire.
FCA Tackles Illegal Crypto ATMs
A crypto ATM is a center for converting fiat into crypto and vice versa. Due to money laundering concerns, the FCA declared crypto ATMs illegal in Mar. 2022. As a result, no crypto ATM in the U.K. has FCA registration.
According to an FCA press release, it conducted an operation in collaboration with the West Yorkshire Police’s Digital Intelligence and Investigation Unit. Further, the press release mentions, “The FCA is working with multiple law enforcement partners, including local police forces, to disrupt and disable illegal Crypto ATMs.”
The FCA also warns that crypto assets are unregulated and high-risk, and citizens might lose their total capital from crypto investments.
The U.K. is in the second phase of its crypto regulation, seeking feedback from the industry stakeholders. The deadline to submit consultations is Apr. 30, 2023.
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BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.