This move is part of the regulator’s efforts to ensure the financial system’s integrity and prevent potential illicit activities associated with unregulated crypto transactions.
The Financial Conduct Authority (FCA) of the United Kingdom has successfully shut down 26 crypto ATMs across the country. The FCA’s actions stemmed from a coordinated investigation to crack down on illegal digital assets ATMs operating without proper authorization in London, Leeds, Sheffield, Nottingham, and Exeter. ATM machines enable crypto traders to buy and sell virtual assets such as Bitcoin (BTC) and Ethereum (Ether) using cash or bank cards.
In an official press release on July 11, the FCA, the regulatory body responsible for overseeing financial activities in the UK, said it had inspected 34 locations suspected of hosting illegal crypto ATMs. Most recently, the regulator, alongside Bedfordshire Police and Hertfordshire Police, investigated 18 more crypto ATMs between May and June this year.
During the investigations, the market watchdog took decisive action against the crypto ATMs, found to be operating unlawfully without registration with the FCA, shutting down 26 machines across various regions in the UK.
FCA Warns Users to Stop Using Crypto ATMs
The closure is part of the regulator’s efforts to ensure the financial system’s integrity and prevent potential illicit activities associated with unregulated crypto transactions.
The latest crackdown comes after the FCA issued a stern warning to operators last year in November, stating that compliance with regulations is a prerequisite for their continued operation. The regulator’s ultimatum emphasized that all crypto ATM operators must adhere to anti-money laundering (AML) and consumer protection requirements, providing a safer environment for users engaging in crypto transactions.
Steve Smart, the Joint Executive Director of the Enforcement and Market Oversight unit at the FCA, warned users to be mindful of the machines as criminals may operate them.
“If you use a crypto ATM in the UK, you are using a machine operating illegally and may be handing your money over to criminals. You will not be protected if something goes wrong, and you could lose your money. It is also unlikely you will be able to contact the machine operator to resolve any problems you may have,” said Smart.
Crypto Trader Losses £1000 to ATM Machine in Sheffield
In the Sheffield region of the UK, an individual fell victim to a crypto ATM scam, losing £1000, according to the FCA. The victim shared his unfortunate experience with the Citizens Advice Bureau, explaining that the transaction failed and the machine could not return their funds.
When attempting to contact the ATM operators using the provided phone number, the victim found that he could only reach the operators via WhatsApp, with no option for a direct phone call. After inspection, authorities confirmed that the ATM is now out of service and no longer operational.
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