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 for
resolution.
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…
