The Financial Conduct Authority (FCA), which is responsible for regulating financial services in the UK, is currently investigating unregistered cryptocurrency ATMs.
The FCA has targeted several locations in and around Leeds City and the West Yorkshire Police cyber unit on suspicion of housing illegally operated crypto ATMs.
The FCA has revealed that no cryptocurrency ATM businesses in the UK are registered with them. The regulator had declared that all cryptocurrency exchange providers, including those operating cryptocurrency ATMs, must register with the FCA and comply with UK money laundering laws.
Unregistered Crypto ATMs operating in the UK are doing so illegally, according to Mark Steward, Executive Director of Enforcement and Market Oversight at the FCA. Steward noted that cryptocurrency businesses operating in the UK must be registered with the FCA to prevent money laundering.
According to Steward, cryptocurrency products are currently unregulated and high-risk, and customers should be ready to lose all of their money if they invest in them.
Steward stated:
“We will continue to identify and disrupt unregistered crypto businesses operating in the UK.”
Following information-gathering operations in West Yorkshire, Detective Sergeant Lindsey Brants of the Force Cyber Team at the West Yorkshire Police stated that many active cryptocurrency ATMs were quickly discovered.
Brants mentioned that letters were sent advising operators not to use the devices and informing them that any violations would result in a money-laundering probe. The Financial Conduct Authority was then informed of the findings.
Brants stated:
“We are pleased to be able to work in partnership with the FCA in what we believe is a national first here in West Yorkshire.”
As part of its ongoing investigation into further potential locations hosting unauthorized crypto ATMs, the FCA stated that it was collaborating with various law enforcement agencies, including other local police forces.
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