• The UK Financial Conduct Authority (FCA) is taking legal action against unregulated crypto ATMs in the city of London.
• The FCA believes these unregistered crypto ATMs are “high risk” and could be used for illicit activities such as money laundering.
• The FCA is working with the National Economic Crime Centre and the Metropolitan Police to inspect sites suspected of hosting illegal crypto ATMs.
UK Financial Watchdog Takes Legal Action Against Unregulated Crypto ATMs
The UK Financial Conduct Authority (FCA) has taken legal action against unregulated crypto ATMs in the city of London. According to Mark Steward, Executive Director of Enforcement and Market Oversight at the FCA, “Crypto ATMs operating without FCA registration is illegal” and “we [FCA] will take action to stop this.”
High Risk Of Illicit Activities
The FCA believes unregistered crypto ATMs are “high risk” and could be used for illicit activities such as money laundering. Last month, the regulatory body issued warnings to unregistered crypto ATM providers in the UK region, ordering them to cease all operations immediately. In addition, it is also in a “joint operation with the Metropolitan Police” to inspect several sites, using its “enforcement powers.”
Coordination With Law Enforcement Partners
The FCA noted it will only continue to use its “powers to inspect several sites in East London suspected of hosting illegally operating crypto ATMs”. It is also working with the National Economic Crime Centre to plan and coordinate action with law enforcement partners against operators of illegal crypto ATMs.
Growing Adoption Of Crypto Assets
As the cryptocurrency industry continues to gain more traction over the past years, regulators have continued clamping down on different sectors within this space. This includes regulating firms offering services related to digital assets including exchanges and custodial wallets as well as other developing technologies such as crypto ATMs.
It’s important for regulators like the FCA take steps towards ensuring that all digital asset services providers adhere strictly by existing laws so that users can trust their investments are safe from any form of fraud or manipulation.