• The FCA issued a stern warning to the crypto ATM operators on February 14 earlier.
• U.K. anti-money-laundering laws require that all crypto ATMs be registered with the FCA.

The Financial Conduct Authority (FCA), Britain’s financial watchdog, “disrupted” 26 of the 34 cryptocurrency ATMs it visited and investigated since the beginning of 2023.

The Financial Conduct Authority (FCA) issued a stern warning to the United Kingdom’s crypto ATM operators on February 14: either comply with legislation or shut down illicit activities. In response to the alert, the FCA and other law enforcement authorities used their authority under anti-money laundering laws to conduct investigations at 36 cryptocurrency ATMs.

Operating Illegally

Steve Smart, joint executive director of enforcement and market monitoring at the FCA, has spoken out against the usage of cryptocurrency ATMs more generally.

Smart stated:

“If you use a crypto ATM in the U.K., you are using a machine that is operating illegally and you may be handing your money over to criminals.”

Smart said that anyone who falls prey to fraud at crypto or Bitcoin ATMs “will not be protected” by the government or the business that owns each machine. In May and June, when the FCA officially announced the launch of the inspection effort, 18 facilities were visited.

U.K. anti-money-laundering laws require that all cryptocurrency exchanges and ATMs be registered with the Financial Conduct Authority (FCA). On July 8, the Clive Police Department published a report documenting a case in which a crypto scammer pretended to be law enforcement and took $6,000 from an unsuspecting victim by threatening an arrest warrant.

Scammers use intimidation and false police identification to trick victims into sending money via cryptocurrency ATMs. It is vital to remember that law enforcement agencies never initiate contact with someone and demand payment by phone or via cryptocurrency.

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