The FCA, U.K.’s financial regulator, is working diligently to bring an end to unlawful crypto ATMs operating within the country. Partnering with regional police forces, the FCA has conducted inspections in Exeter, Nottingham, and Sheffield. The regulator is highlighting these devices, which convert fiat currency into crypto, as potential money laundering threats.
According to the FCA, none of the devices in question are registered with the regulator, which is a legal requirement. Therese Chambers, the FCA’s Executive Director of Enforcement and Market Oversight, emphasized the seriousness of the situation, stating that any crypto ATMs operating without FCA registration are considered illegal. The FCA remains committed to taking action to curtail illegal activities associated with these ATMs.
Following these recent inspections, the FCA is now reviewing the gathered evidence. Although no specifics have been provided, further action is likely to follow based on their findings. This is not the first instance of enforcement action against unauthorized crypto ATMs in the U.K. In March, similar raids were conducted in both Leeds and East London.
Of the 17 known crypto ATMs in the U.K, as indicated by the CoinATMRadar website, none are operated by the approximately 40 registered crypto companies. The FCA has clearly stated that none of these registered crypto companies have been granted permission to offer such services.
This continued scrutiny and crackdown on unregistered crypto ATMs serve as a stark reminder of the regulatory obligations crypto-related businesses must adhere to. While new opportunities for growth and innovation are arising within the realm of blockchain technologies and digital assets, it is essential that these businesses operate within the bounds of the law to ensure a safe and regulated market.
However, the increasing number of unregistered and unlawful crypto ATMs illustrates the challenges regulators face in staying up-to-date and adapting to the rapidly evolving industry. Therefore, fostering open communication and collaboration between regulatory agencies and industry players will be vital in maintaining a well-regulated, safe, and accessible market for all.
In conclusion, the FCA’s ongoing crackdown on unlawful crypto ATMs demonstrates the necessity for regulatory compliance within the booming crypto industry. With the future of money shifting towards cryptocurrencies and digital assets, it is of utmost importance that the market remains secure, lawful, and transparent. Only then can we truly embrace the potential of blockchain-based technologies and their transformative impact on our financial system.
Source: Coindesk
