FCA takes action against unregistered crypto ATM operators in Leeds

Details

The Financial Conduct Authority (FCA) stated on February 14, 2023, local time, that it takes unregistered crypto ATM operators in Leeds to the task. The FCA has entered and inspected several locations in Leeds because there are some unregistered crypto ATMs. This action is for anti-money laundering purposes in the UK.

According to the FCA website, it is the first time that FCA joined forces with West Yorkshire Polices Digital Intelligence and Investigation Unit.

Mark Steward, Executive Director of Enforcement and Market Oversight at the FCA, said:

'Unregistered Crypto ATMs operating in the UK are doing so illegally…We will continue to identify and disrupt unregistered crypto businesses operating in the UK.

'Crypto businesses operating in the UK need to be registered with the FCA for anti-money laundering purposes. However, crypto products themselves are currently unregulated and high-risk, and you should be prepared to lose all your money if you invest in them.'

Det Sgt Lindsey Brants of the Force Cyber Team at West Yorkshire Police said:

'Having conducted intelligence gathering work across West Yorkshire, we soon established the locations of several live crypto ATMs…Warning letters were issued requesting the operators cease and desist from using the machines and that any breach of regulations would result in an investigation under money-laundering regulations. We then shared our findings with the Financial Conduct Authority.'

About Crypto ATM operators

Crypto ATMs are machines that allow customers to buy or convert funds into crypto assets. The largest crypto ATM operator is Bitcoin Depot, which has a 17.6% marketshare, according to Coin ATM Radar. Bitcoin Depot, CoinCloud, and CoinFlip are also famous crypto ATM operators.

Crypto ATMs do not connect to an individual bank account like a traditional ATM; rather, they connect with a users digital wallet to process the transaction and send crypto to the customer.

Conclusion

The FCA previously warned all operators of the legal consequences of failing to register with the FCA. In addition to West Yorkshire Police, the FCA is also working with multiple law enforcement partners, including local police forces, to take action against illegal Crypto ATMs.

As the crypto market does not awake from the last years “crypto winter”, financial regulatory institutions like FCA conducted more strict management on unlicensed crypto firms. Investing in regulated brokers or exchanges is safer for your asset. If you want to know more information about FCA-regulated brokers. You can check it on WikiFX.