The UK's financial regulator, the Financial Conduct Authority (FCA), has "discontinued" 26 of the 34 cryptocurrency ATMs it has visited and inspected since early 2023.
On February 14, the FCA gave a Ultimatum to all crypto ATM operators in the UK โ either to comply with regulations or to liquidate illegal operations. Following the warning, the FCA, along with other law enforcement agencies, investigated 36 crypto ATM locations using powers under the Money Laundering Regulations 2017.
#Crypto ATMs that operate without FCA registration are illegal. The actions we have taken in recent months and broader work show that we will act to stop illegal activity. #cryptocurrency https://t.co/KnMhiKAt21
โ Financial Conduct Authority (@TheFCA) May 5, 2023
Speaking out against the use of all crypto ATMs, Steve Smart, joint executive director of compliance and market oversight at the FCA, stated:
"If you use a crypto ATM in the UK, you are using a machine that is operating illegally and may be handing your money over to criminals."
Smart further clarified that victims of scams involving cryptocurrencies or Bitcoin (BTC) ATMs โwill not be protectedโ by the government or the operator of the machines. Of the batch, 18 locations were inspected in May and June, just as the FCA publicly announced the start of the inspection day.
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 cryptocurrency scammer called an unsuspecting victim purporting to represent the police and managed to steal $6,000 while threatening an arrest warrant.
Scammers use scare tactics and pose as law enforcement officials to trick unsuspecting people into transferring funds through crypto ATMs. However, it is important to note that law enforcement agencies never contact people demanding payment over the phone or via crypto.
Magazine: Should kids be on the 'orange pill'? The case of Bitcoin children's books
Post navigation
Previous Post
