UK Intensifies Crackdown on Unregistered Crypto ATMs

FCA's Crackdown on Unregulated Crypto ATMs

The Financial Conduct Authority (FCA) in the United Kingdom is intensifying efforts to address the issue of unregulated crypto Automated Teller Machines (ATMs). Recent inspections were conducted in the South West of England and Nottinghamshire. This initiative is part of a broader campaign aimed at tackling illegal crypto ATMs, which have been linked to money laundering activities.

Importance of Regulation

Crypto ATMs provide a convenient means for individuals to buy or convert money into cryptocurrencies. Despite their growing popularity, none of the crypto ATM operators in the UK are registered with the FCA, a requirement for legal operation. This lack of compliance raises significant regulatory concerns.

Coordinated Efforts for Enforcement

Therese Chambers, the Executive Director of Enforcement and Market Oversight at the FCA, emphasized the agency's commitment to halting illegal activities related to crypto ATMs. The FCA is collaborating with the National Economic Crime Centre and other law enforcement agencies to enhance the coordination of actions against unregistered operators. These joint efforts aim to increase public awareness about the risks associated with illegal crypto ATMs.

Global Crypto ATM Trends

Globally, the number of crypto ATMs continues to rise, with installations surpassing 38,000. In 2022 alone, over 4,200 new Bitcoin ATMs were set up worldwide. The United States remains the leader in crypto ATM installations, reflecting a significant growth trend in the sector.

Conclusion

The FCA's active enforcement against unregistered crypto ATMs underscores the challenges regulators face in keeping pace with the rapidly evolving cryptocurrency landscape. By targeting illegal operators, the FCA aims to safeguard the financial system and protect consumers from potential abuse.