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FCA illegal crypto ATM crackdown overview:
- Who: The Financial Conduct Authority (FCA) is working with West Yorkshire Police to crack down on operators’ of illegal cryptocurrency ATMs.
- Why: The FCA has previously warned that any crypto ATMs in the country would be illegal, and thus those operating them would be doing so unlawfully.
- Where: There are reportedly 27 Bitcoin ATMs across the U.K.
The Financial Conduct Authority (FCA) has begun enforcing a previous proclamation that any crypto ATM operating in the U.K. would be doing so illegally.
The U.K.’s financial watchdog has been working in conjunction with West Yorkshire Police to go after the operators of cryptocurrency ATM machines in the northern English city of Leeds, reports CoinDesk.
While the FCA is not currently providing any specific details of its enforcement, the cyber team belonging to the West Yorkshire Police has reportedly identified several crypto ATMs that are live.
Detective Sergeant Lindsey Brants of the Force Cyber Team at West Yorkshire Police said, in a statement posted by the FCA, that it has issued warning letters to crypto ATM operators, requesting they “cease and desist” using the machines.
Brants further said that anyone caught breaching the regulations against crypto ATMs would be investigated “under money-laundering regulations.”
There are currently 27 Bitcoin ATMs operating across the whole of the U.K., according to data from Coin ATM Radar, reports CoinDesk.
FCA reminds consumers that crypto products are ‘unregulated,’ ‘high-risk’
The FCA said that any crypto businesses operating out of the U.K. must be registered with the agency “for anti-money laundering purposes,” noting that “crypto products themselves are currently unregulated and high-risk.”
“You should be prepared to lose all your money if you invest in (crypto products),” said Mark Steward, Executive Director of Enforcement and Market Oversight at the FCA.
The financial watchdog has previously issued a warning that no cryptocurrency businesses registered with the agency are legally allowed to operate a crypto ATM, reports CoinDesk.
The FCA has been more active in general lately, with the agency issuing a total of 26 fines last year — more than doubling the amount from 2021.
The increase in fines has been at least partially attributed to a report, released by the Treasury Select Committee, that recommended the FCA should be more “proactive” in its effort to protect retail investors.
Have you used a crypto ATM? Let us know in the comments!
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