British Financial Conduct Authority (FCA) He revealed on Friday that all crypto ATMs operating in the country are illegally conducting their transactions and have ordered operators to shut down these ATMs immediately.
The FCA, the UK’s top financial regulator, has stated that operators must comply with UK money laundering regulations and none of them comply. The regulator noted that ATMs that allow users to exchange crypto for fiat or vice versa are subject to little regulation and can be used as a tool for money laundering.
The regulator specifically cited the lack of know-your-customer (KYC) requirements for small transactions.
According to data from Coinatmradar, there are currently around 70 crypto ATMs operating in the UK.
FCA, cryptocurrency He always maintained a conservative approach towards his units. The agency recently revealed that it filed more than 300 lawsuits related to crypto assets between April and September 2021. More than 50 active investigations are ongoing, including criminal investigations into unauthorized crypto businesses.
Earlier this year, the agency also introduced strict restrictions on advertising for crypto products. In his announcement on Friday, he stated that he will continue to warn consumers about the unregulated and high-risk nature of crypto.
Crypto ATMs Are In The Gray Area
Given the option to easily and anonymously convert crypto to fiat, crypto ATMs have faced a massive amount of regulatory scrutiny since their inception. For example, in the United States, all ATM providers are mandated to have an effective written anti-money laundering program on their machines. The United States has the highest number of crypto ATMs in the world, at over 30,000 locations.
Earlier this year, cryptocurrency hub Singapore banned crypto ATMs as it took a tougher stance protecting investors from crypto-related scams and volatility. Specifically, the Monetary Authority of Singapore had explained that ATMs could lead the public to buy crypto regardless of risk, exposing them to the high amount of volatility in the market.
But El Salvador, which legalized Bitcoin last year, Bitcoin ATMwidely adopted. The country has ATMs serving more than 200 locations.