• The UK FCA is taking legal action against unregulated crypto ATMs in London.
• The FCA has issued warnings to unregistered crypto ATM providers in the UK region.
• The FCA believes unregistered crypto ATMs pose a high risk of money laundering.
UK Financial Watchdog Crackdown On Crypto ATMs
The UK Financial Conduct Authority (FCA) has taken legal action against unregulated crypto Automatic Teller Machines (ATM) in the city of London. Crypto ATMs are stand-alone machines that allow users to buy and sell cryptocurrencies, such as Bitcoin and Ethereum, for cash. However, the FCA deems these machines as illegal if they are not registered or regulated under any legal force.
FCA’s Warning To Unregistered Crypto ATM Providers
Mark Steward, Executive Director of Enforcement and Market Oversight at the FCA recently released a statement saying “Crypto ATMs operating without FCA registration is illegal” and warned crypto ATM providers to cease all operations immediately or face legal proceedings. The financial watchdog stated that it views unregistered crypto ATMs as “high risk” because they could be advantageous to illicit activities such as money laundering.
Joint Operations With Law Enforcement Partners
In line with its warning, the FCA is currently conducting inspections on sites suspected of hosting illegally operating crypto ATMs using its enforcement powers. In addition, it has also entered into joint operations with law enforcement partners such as the National Economic Crime Centre and Metropolitan Police to tackle operators of illegal crypto ATMS across London.
Regulating Crypto Industry Development
As cryptocurrency adoption continues to surge globally, several regulators including the FCA have increased their efforts in regulating all aspects of the industry’s development process – from cryptocurrency exchanges to wallets and now even crypto ATMs. This move is aimed at ensuring that digital assets are used for legitimate purposes only and do not become means for criminal activities such as money laundering or frauds.
Overall, the UK financial watchdog’s crackdown on unregulated crypto ATMs indicates its commitment to protect investors from potential risks associated with digital asset investment while also encouraging responsible innovation within the industry by avoiding any fraudulent activities through proper regulation