UK Financial Watchdog Launches Crackdown on Suspected Illegal Crypto ATMs with Site Inspections

UK’s Financial Conduct Authority Raids Suspected Unregistered Crypto ATMs Sites

The United Kingdom’s Financial Conduct Authority (FCA) has taken enforcement action against sites across the country that are suspected of operating illegally registered crypto automated teller machines (ATMs).

In a press release dated May 5th, 2023, the FCA revealed that it had collaborated with local authorities in Exeter, Nottingham, and Sheffield to carry out the operation. The enforcement action follows similar operations in East London and Leeds earlier in the year, where the FCA issued warnings or cease-and-desist requests to suspected crypto ATM operators.

Therese Chambers, the FCA Executive Director of Enforcement and Market Oversight, stated that “the action we’ve taken over the past few months and wider work shows that we will act to stop illegal activity. Besides disrupting unregistered crypto businesses, the joint efforts have helped raise awareness of illegally operated crypto ATMs in the UK among the public.”

Using Power under the Money Laundering Regulations

The FCA cited its powers under the Money Laundering Regulations of 2017 to conduct the inspections. It stated that it planned to review evidence gathered and “consider taking further action where necessary.”

Registered Crypto ATMs

According to data from CoinATMRadar, there are more than 15 crypto ATMs in the UK, at the time of publication, operated by Big Sea Coins, BD ATMs, Cryptobitecoin, and Computer House. However, it is unclear whether any of these are registered under the FCA.

Conclusion

The FCA’s crackdown on illegally operated crypto ATMs across the UK shows its determination to act against illegal activity in the crypto industry. The regulator is using its powers under the Money Laundering Regulations to conduct inspections and take further action where necessary. The public awareness raised by these joint efforts is expected to discourage individuals from using unregistered crypto ATMs in the UK.

Summary of FCA’s actions:

The FCA has raided sites across the UK suspected of hosting illegally operated crypto ATMs. The regulator coordinated with local authorities in Exeter, Nottingham, and Sheffield to carry out the operation. The FCA has cited its powers under the Money Laundering Regulations of 2017 to conduct the inspections. It plans to review evidence gathered and “consider taking further action where necessary.”

• Similar operations have taken place in East London and Leeds, where the FCA issued warnings or cease-and-desist requests to suspected crypto ATM operators.
• Data from CoinATMRadar shows that there are more than 15 crypto ATMs in the UK, operated by Big Sea Coins, BD ATMs, Cryptobitecoin, and Computer House. However, it is unclear whether any of these are registered under the FCA.
• The FCA’s crackdown on illegally operated crypto ATMs shows its determination to act against illegal activity in the crypto industry. The public awareness raised by these joint efforts is expected to discourage individuals from using unregistered crypto ATMs in the UK.