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The United Kingdom’s financial regulator, the Financial Conduct Authority (FCA), has “obstructed” and inspected 26 out of 34 cryptocurrency ATMs since the beginning of 2023.
On 14 February, the FCA gave an ultimatum to all crypto ATM operators in the UK – either comply with the rules or cease illegal operations. Following the warning, the FCA – along with other law enforcement agencies – carried out investigations at 36 crypto ATM locations using powers under the Money Laundering Regulations 2017.
#crypto ATMs operating without FCA registration are illegal. The actions we’ve taken over the past few months and the extensive work we do show that we will take action to stop illegal activity. #cryptocurrency https://t.co/KnMhiKAt21
– Financial Conduct Authority (@TheFCA) 5 May 2023
Speaking out against the use of all crypto ATMs, Steve Smart, Joint Executive Director of Enforcement and Markets Inspection at the FCA, said:
“If you use a crypto ATM in the UK, you are using a machine that is operating illegally and you could be handing over your money to criminals.”
Smart further clarified that victims of scams involving crypto or bitcoin (BTC) ATMs “will not be protected” by the government or the operator of the machines. Of the lots, 18 locations were inspected in May and June, right around the time the FCA publicly announced the launch of the inspection campaign.
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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 issued a reports Detailing how a crypto scammer pretending to represent law enforcement managed to steal $6,000 by calling an unsuspecting victim and threatening an arrest warrant.
Scammers use fear tactics and impersonate law enforcement officers to trick unsuspecting individuals into transferring funds through crypto ATMs. However, it is important to note that law enforcement agencies never approach individuals demanding payment over the phone or through crypto.
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