Key Takeaways:
- Steve Smart, the FCA’s joint executive director of Enforcement and Market Oversight, issued a harsh warning to crypto ATM users.
- Users of crypto ATMs are not protected, and FCA advises compliance and caution.
The UK’s financial watchdog, the Financial Conduct Authority (FCA), has “disrupted” 26 of the 34 cryptocurrency ATMs it examined after issuing a final warning to all of the operators of such ATMs. The South West Regional Organised Crime Unit, the Greater London, Bedfordshire, and Hertfordshire police forces, as well as the financial watchdog performed the inspections.
In one instance, a member of the public inserted £1,290 ($1,290) into a crypto ATM, despite the fact that the device indicated the transaction had failed.
As more and more individuals use them to buy and sell digital currencies like Bitcoin and Ethereum, the popularity of cryptocurrency ATMs has risen in recent years.
The FCA does warn that unregistered operators could not have the necessary safeguards in place to stop illegal actions like money laundering.
A strong caution against using unregistered crypto ATMs was issued by Steve Smart, the Joint Executive Director of Enforcement and Market Oversight at the FCA: “If you use a crypto ATM in the UK, you are using an illegally operating machine and you could be giving your money to criminals,” the statement reads.
The FCA visited 18 facilities after a thorough inspection drive in May and June, reaffirming their dedication to upholding regulatory standards. All automated teller machines (ATMs) and cryptocurrency trading platforms in the UK must be FCA-registered and in compliance with anti-money laundering regulations.
The Clive Police Department reported a tragic occurrence on July 8 that exposed the fraudulent methods used by a cryptocurrency fraudster. The con artist called a victim on the phone and threatened them with an arrest warrant while posing as a law enforcement official. Through the use of terror, the offender was able to steal $6,000 from the unwitting victim.
In spite of the fact that there are over 40 crypto companies established in the UK, none of them has a licence to provide ATM services, making all functioning crypto ATMs unlawful. Ten cryptocurrency ATMs are functioning throughout the nation, according to the statistics website Coin ATM Radar.
