In what is being called the first major crackdown on illegally run cryptocurrency ATMs in the UK, police have conducted a series of raids in and around the city of Leeds. Multiple establishments in the city were suspected of housing machines that allowed clients to buy or convert traditional currency into cryptoassets like bitcoin.
Raids were conducted after the Financial Conduct Authority and the West Yorkshire Police Force collaborated on an investigation including digital evidence. The FCA stated that it “will review evidence gathered during these visits and consider further potential enforcement action.”
In its announcement on 14 February, the FCA noted that no operators of cryptocurrency ATMs in the United Kingdom currency are registered with the FCA. The FCA has previously made it clear that all cryptocurrency exchange providers, including crypto ATM operators, must be registered with the agency and adhere to money laundering legislation in the United Kingdom.
Mark Steward, executive director of enforcement at the Financial Conduct Authority, stated that “crypto ATMs operating in the U.K. are doing so illegally,” and that the FCA will continue to disrupt unregistered crypto firms in the nation.
The executive warned that investors should be “prepared to lose all of their money with crypto” since crypto products are “currently unregulated and high-risk.”
Local law enforcement has reportedly warned crypto ATM operators many times to stop utilizing the machines, as reported by police detective sergeant Lindsey Brants.
“Any breach of regulations would result in an investigation under money-laundering regulations,” he added.
As the FCA continues to look into more sites, it has indicated it is working with “multiple law enforcement partners,” which may include other local police forces, to find illegal cryptocurrency ATMs. There are at least 28 sites in the United Kingdom that provide Bitcoin ATMs, according to data from Coinradar. As such, many ATM operators might be impacted by the FCA’s action.
