FCA Declares Bitcoin ATMs Illegal, Orders Them to Shutdown

Following the surge in the number of Bitcoin ATMs across the United Kingdom, the country’s financial watchdog, the Financial Conduct Authority (FCA), has ordered all crypto ATMs to shutdown. after declaring them illegal.

UK FCA Goes After Bitcoin ATMs

Crypto ATMs are independent machines that allow users to buy and/or sell bitcoin as well as other cryptocurrencies using fiat currencies or debit cards.

In a Friday announcement, the regulator noted that it was concerned about the growing number of crypto ATMs operating in the country, adding that operators of Bitcoin ATMs who fail to comply with the latest warning would face legal action.

According to the FCA, Bitcoin ATM operators were not authorized to offer such services, thus they are operating illegally.

“None of the crypto asset firms registered with us have been approved to offer crypto ATM services, meaning that any of them operating in the UK are doing so illegally and consumers should not be using them. We are concerned about crypto ATM machines operating in the UK and will therefore be contacting the operators instructing that the machines be shut down or face further action,” the financial regulator said. 

Growing Adoption of Crypto ATMs

Over the years, thousands of these machines have been and are still being installed in different countries across the globe. In September last year, about 28,030 crypto ATM installations were made worldwide, and the number continues to grow. 

At press time, data from popular crypto ATM tracker CoinATMRadar shows that more than 36,300 crypto ATMs have been installed worldwide. 

A recent report also suggested that the use of crypto ATMs is not fading anytime soon. The report projects that within the next six years, crypto users will continue to use these ATMs to convert major coins like bitcoin, dogecoin, ethereum, and litecoin, among others, to fiat, and vice versa.

Considering the growing number of global cryptocurrency users, the report estimates that the global crypto ATM market will reach $1.88 billion by 2028.

Your crypto deserves the best security. Get a Ledger hardware wallet for just $79!

  • bitcoinBitcoin (BTC) $ 23,318.00 0.36%
  • ethereumEthereum (ETH) $ 1,597.28 0.72%
  • bnbBNB (BNB) $ 307.99 1.7%
  • xrpXRP (XRP) $ 0.402397 2.8%
  • solanaSolana (SOL) $ 24.21 0.66%
  • terra-luna-2Terra (LUNA) $ 2.07 3.42%