FCA calls time on crypto ATMs with new crackdown

The Financial Conduct Authority (FCA) has warned operators of crypto ATMs to shut down their machines or face enforcement action.

According to the FCA, none of the cryptoasset firms that are registered with the FCA have been approved to offer crypto ATM services, meaning their operations are illegal and consumers should not be using them.

 The authority detailed how recently the Upper Tribunal ruled against crypto ATM provider Gidiplus, who wanted to continue trading pending an appeal. However, a judge concluded that there was a ‘lack of evidence as to how Gidiplus would undertake its business in a broadly compliant fashion’.

The FCA said, “We are concerned about crypto ATM machines operating in the UK and will therefore be contacting the operators instructing that the machines be shut down or face further action. Since we published the list of unregistered crypto firms that may have been continuing to conduct business, a recent assessment found that 110 are no longer operational.

“We regularly warn consumers that cryptoassets are unregulated and high-risk which means people are very unlikely to have any protection if things go wrong, so people should be prepared to lose all their money if they choose to invest in them.”

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