In the world's first crackdown on illegally operated cryptocurrency ATMs, authorities in Leeds in the UK raided several sites suspected of hosting machines that allegedly allowed people to buy or convert conventional currencies into cryptocurrencies such as Bitcoin.
Crypto ATMs in Britain: How were they busted?
The raids were carried out as part of the joint investigation between the Financial Conduct Authority (FCA) and West Yorkshire Police's digital intelligence and investigation unit. "The FCA will review the evidence collected during these visits and will consider further potential enforcement actions," the FCA said.
The FCA in the UK requires all companies that trade cryptocurrencies to register. Registration involves verification and a commitment to ensure that a cryptocurrency-related business is not involved in terrorist financing controls or money laundering operations.
Reports in the British media said that there are no crypto ATMs registered with the FCA. This means that any crypto ATM operating in the UK, if operational, is still illegal.
Crypto ATM Raid: Operators Warned First
West Yorkshire Police said they first issued a warning letter to cryptocurrency traders. When they didn't, the police shared their findings with the Financial Conduct Authority (FCA).
The FCA said it was working with "multiple law enforcement partners" including other local police forces as it continues to investigate other locations that may harbor illegal crypto ATMs.
โWe will continue to identify and disrupt unregistered crypto companies operating in the UK,โ Mark Steward, the FCA director in charge of market enforcement and oversight, was quoted as saying by The Guardian.
โCryptocurrency companies operating in the UK must be registered with the FCA to prevent money laundering. However, cryptocurrency products themselves are currently unregulated and high risk, and you should be prepared to lose all your money if you invest in them."
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