UK FCA shuts down 26 crypto ATMs following coordinated investigation

The United Kingdom’s fiscal regulator, the Financial Conduct Authority (FCA), “disrupted” 26 of the 34 cryptocurrency ATMs it visited and inspected since the commencement of 2023.

On Feb. 14, the FCA gave an ultimatum to each crypto ATM operators successful the UK — to either comply with regulations oregon upwind down amerciable operations. Following the warning, the FCA — on with different instrumentality enforcement agencies — investigated 36 crypto ATM locations utilizing powers nether the Money Laundering Regulations 2017.

#Crypto ATMs operating without FCA registration are illegal. The enactment we’ve taken implicit the past fewer months and wider enactment shows that we volition enactment to halt amerciable activity. #cryptocurrency https://t.co/KnMhiKAt21

— Financial Conduct Authority (@TheFCA) May 5, 2023

Speaking against the usage of each crypto ATMs, Steve Smart, associated enforcement manager of enforcement and marketplace oversight astatine the FCA, stated:

“If you usage a crypto ATM successful the UK, you are utilizing a instrumentality that is operating illegally and you whitethorn beryllium handing your wealth implicit to criminals.”

Smart further clarified that victims of scams involving the crypto oregon Bitcoin (BTC) ATMs “will not beryllium protected” by the authorities oregon the relation of the machines. Out of the lot, 18 locations were inspected successful May and June, close erstwhile the FCA publically announced the commencement of the inspection drive.

Related: UK authorities moves guardant connected measure aimed astatine empowering authorities to prehend crypto

All crypto exchanges and ATMs indispensable beryllium registered with the FCA and comply with the UK Money Laundering Regulations. On July 8, Clive Police Department released a report detailing however a crypto scammer, called up an unsuspecting unfortunate pretending to correspond instrumentality enforcement and managed to bargain $6,000 portion threatening an apprehension warrant.

Scammers utilize fearfulness tactics and impersonate instrumentality enforcement officials to deceive unsuspecting individuals into transferring funds done crypto ATMs. However, it is important to enactment that instrumentality enforcement agencies ne'er interaction individuals demanding outgo implicit the telephone oregon via crypto.

Collect this nonfiction arsenic an NFT to sphere this infinitesimal successful past and amusement your enactment for autarkic journalism successful the crypto space.

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