UK FCA closes 26 crypto ATMs following coordinated investigation

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The UK’s financial regulator, the Financial Conduct Authority (FCA), has disrupted 26 of the 34 cryptocurrency ATMs it has visited and inspected since the start of 2023.

On February 14, the FCA gave an ultimatum to all crypto ATM operators in the UK to comply with regulations or end illegal operations. Following the warning, the FCA and other law enforcement agencies investigated 36 crypto ATM sites using powers under the money laundering regulations.

Speaking against the use of all crypto ATMs, Steve Smart, Joint Executive Director of Enforcement and Market Surveillance at the FCA, said:

If you use a crypto ATM in the UK, you are using a machine that is operating illegally and you can hand over your money to criminals.

Smart further clarified that victims of scams involving crypto or Bitcoin (BTC) ATMs will not be protected by the government or the operator of the machines. Out of the lot, 18 locations were inspected in May and June, just as the FCA publicly announced the start of the inspection campaign.

Related: UK Government Moving Forward With Bill To Empower Authorities To Seize Crypto

All crypto exchanges and ATMs must be registered with the FCA and comply with UK money laundering regulations. On July 8, the Clive Police Department released a report detailing how a crypto scammer called an unsuspecting victim claiming to represent law enforcement and stole $6,000 while threatening a warrant for his arrest. .

Scammers use scare tactics and pose as law enforcement officials to trick unsuspecting individuals into transferring funds through crypto ATMs. However, it is important to note that law enforcement never contacts people demanding payment over the phone or via crypto.

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