During the past six months, FCA closed almost 80% of investigated crypto ATMs.
A striking wave of oversight by the UK's premier financial regulator, the Financial Conduct Authority (FCA), has hit the country's crypto ATM sector.
Since the beginning of 2023, the financial watchdog closed 26 out of 34 "disrupted" crypto ATMs.
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The FCA initiated an operation on February 14th, issuing a stern directive to all cryptocurrency ATM providers across the country. The message was clear — adhere to the rules or discontinue illegal activities.
The warning was issued by the FCA in collaboration with various law enforcement bodies, culminating in a total of 36 ATM sites being scrutinized under the purview of the Money Laundering Regulations of 2017.
In a sweeping move against crypto ATMs, Steve Smart, the joint executive director of enforcement and market oversight at the FCA, declared:
If you use a crypto ATM in the UK, you are using a machine that is operating illegally and you may be handing your money over to criminals.
Smart painted a bleak picture for cryptocurrency or Bitcoin ATM scam victims. He warned that these individuals "will not be protected" by either the government or the ATM operators.
A substantial number of inspections, 18 to be exact, were carried out in May and June, correlating to FCA's announcement about the enforcement actions.
According to the UK Money Laundering Regulations, crypto ATMs and exchanges must register with the FCA.
The narrative of this saga reveals the challenges faced by global regulators as they strive to tame the rapidly evolving crypto market. In this context, the FCA's approach serves as a vivid reminder of the stark realities of cryptocurrency and the perils that accompany its misuse.
At the beginning of July, the UK's FCA urged crypto firms to adhere to the financial promotion regime by October or face potential legal repercussions.
