UK’s FCA takes action against crypto ATMs in London

UK's FCA takes action against crypto ATMs in London

The UK’s Financial Conduct Authority (FCA) has made another move to crackdown on crypto ATMs by inspecting several sites in East London.

The joint operation with the Metropolitan Police inspected several sites. It stated that no crypto ATM operators are registered with the FCA, which is required for them to operate legally.

Following the inspections, the FCA will review evidence it has gathered and consider further action where necessary.

A crypto ATM allows users to buy or convert money into crypto assets.

FCA executive director of enforcement and market oversight 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.”

The FCA is currently working with the National Economic Crime Centre to plan and coordinate action with law enforcement partners against operators of illegal crypto ATMs.

This recent action in East London follows similar activity in Leeds, where the FCA inspected several sites suspected of hosting unregistered crypto ATMs, alongside West Yorkshire Police.

In March 2022, the FCA declared that all crypto ATMs should be shut down as they were not yet registered with the regulator.

The FCA recently hosted a two-day crypto event to explore how the evolving world of cryptoassets could be regulated in the UK. Around 100 participants from the crypto space, financial services, academia, consumer groups and subject matter experts joined the event.

In other crypto news, Divly, a FinTech helping simplify tax declarations for the crypto market, has raised $400,000 in a new fundraise.  

Keep up with all the latest FinTech news here.

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