The FCA Utilizes Authority to Inspect Sites Suspected of Hosting Unlicensed Crypto ATMs in East London
The FCA and Metropolitan Police Team Up to Inspect Locations Housing Unregistered Crypto ATMs in East London, with Repercussions for Non-Compliance
Executive Director of Enforcement and Market Oversight at the FCA, Mark Steward, said:
“Crypto ATMs operating without FCA registration are illegal and, as today shows, we will take action to stop this”.
“This operation, alongside last month’s action in Leeds, sends a clear message that we will continue to identify and disrupt unregistered crypto businesses in the UK”.
“Crypto products are not currently regulated and they are high risk. You should be prepared to lose all your money if you invest in them”.
Crypto ATMs provide people with the option to purchase or convert money into crypto assets. However, the Financial Conduct Authority (FCA) has not registered any crypto ATM operators in the UK, which is required for them to operate lawfully.
In response to this, the FCA has been collaborating with the National Economic Crime Centre and other law enforcement partners to take action against illegal crypto ATM operators. This follows a recent inspection of multiple sites in Leeds which were thought to be hosting unregistered crypto ATMs, in partnership with West Yorkshire Police.
The FCA will review the evidence gathered from the visits and determine whether to take further action. This is part of the FCA’s ongoing efforts to remind consumers that crypto assets are unregulated and high-risk, meaning they are unlikely to receive any protection if things go wrong.
Any crypto asset exchange providers, including Crypto ATM operators, in the UK must be registered with the FCA and abide by the UK Money Laundering Regulations. This is applicable to any operators of crypto ATMs.
