FCA’s crackdown on illegal Crypto ATMs aims to safeguard consumers

FCA's crackdown on illegal Crypto ATMs aims to safeguard consumers

Today, the United Kingdom Federal Conduct Authority takes action against illegal crypto ATMs working in several regions. According to reports, the FCA has disrupted illegal crypto ATMs installed in Exeter, Nottingham, and Sheffield. 

The Federal Conduct Authority has been very active in cracking down on illegal crypto ATMs running across the country in the last few months. On May 5, the FCA published a report informing about the joint operation with South West Regional Organised Crime Unit, Yorkshire and Humber Regional Organised Crime Unit, and the Nottinghamshire Police Force. Additionally, the agency is not only working towards disrupting illegal crypto ATMs but also creating awareness against illegal crypto ATMs in the country. Those crypto ATMs that are not registered under FCA are illegal crypto ATMs. For those who are not aware, crypto ATMs allow people to buy or convert into crypto assets. 

Therese Chambers, Executive Director of Enforcement and Market Oversight at the FCA said that the FCA has been working very actively in stopping illegal crypto ATMs completely. Spreading Awareness is a very important part of illegal crypto ATMs to make the public aware of the potential threats. Crypto assets in the United Kingdom are not regulated currently that’s why it’s become more important to keep a sharp eye on activities. People who are investing in them need to be prepared to lose all of their investments if they invest in crypto products. 

Criminals may exploit the loopholes because of unregistered crypto ATMs installed in the country and can launder money using these machines, says Peter Highway, Economic Crime Unit Manager at the South West Regional Organised Crime Unit (SWROCU). Additionally, these ATMs provide safe havens for the illegally acquired money movement which causes serious problems like terror funding. Also, the FCA informed that currently no crypto ATMs are registered with them which they must need if they want to operate legally. 

The Federal Conduct Authority has previously sent warnings to illegal crypto ATMs installed in the country. In March, it was warned that either follow the UK Money Laundering Regulations (MLR) or face enforcement actions. Also, the FCA clarified that customers need to restrain themselves from using these ATMs because if things go wrong the authorities cannot recover their investments. In February, the same actions were witnessed in Leeds where agencies have disrupted some illegal ATMs. The steps to prevent any unforeseen mishaps related to crypto assets is a welcoming step by the UK and will send a strong message to rule breakers. 

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