The United Kingdom Financial Conduct Authority (FCA) is cracking down on unregistered crypto ATM operators across several locations in the city of Leeds.
Crypto ATMs are electronic kiosks that allow investors to purchase crypto assets, such as Bitcoin (BTC) and Ether (ETH), using cash or a debit card.
FCA Goes After Crypto ATM Operators
In the UK, crypto ATM operators must register with the FCA to comply with the country’s anti-money laundering measures. The FCA has claimed that no crypto ATM operators are currently registered with it, and anyone operating in the UK is doing so illegally.
In a February 14 announcement, the regulator said it had used its powers to “enter and inspect several sites around Leeds suspected of hosting illegally operated crypto ATMs.”
Mark Steward, Executive Director of Enforcement and Market Oversight at the FCA, stated that unregistered crypto ATMs operating in the UK are doing so illegally and that the agency will continue to “identify and disrupt” unregistered crypto businesses operating in the country.
FCA: Crypto Products Are “High-Risk”
He added that “crypto products themselves are currently unregulated and high-risk” and that investors should be ready to lose all their money if they choose to invest in such products.
Det Sgt Lindsey Brants of the Force Cyber Team at West Yorkshire Police said after carrying out “intelligence gathering work” across West Yorkshire, it identified the locations of live crypto ATMs.
“Warning letters were issued requesting the operators cease and desist using the machines and that any breach of regulations would result in an investigation under money-laundering regulations. We then shared our findings with the Financial Conduct Authority,” he added.
The FCA said it is currently working with several enforcement partners to disrupt and disable illegal crypto ATMs. It added that it will review evidence gathered during the most recent visit and “consider further potential enforcement action.”
The UK is ranked one of the top countries in terms of crypto ATMs. According to reports, the UK has around 230 cryptocurrency withdrawal machines across the country.
