The Financial Conduct Authority (FCA) of the United Kingdom has been taking strict measures to combat the use of unregulated crypto Automated Teller Machines (ATMs). In its latest effort, the FCA has inspected several sites in the South West of England and Nottinghamshire.
The inspections are part of the FCA’s ongoing efforts to tackle the use of unregulated crypto ATMs, which have been used by criminals to launder illegally obtained cash. According to an official statement, the FCA has discovered that none of the crypto ATM operators in the UK are registered with the authority. This means that these operators are not complying with the anti-money laundering regulations set by the FCA.
Global crypto ATM installations have exceeded 38,000, with the number of crypto ATMs in the UK reaching 233, according to data from CoinATMRadar. These machines allow users to buy or sell cryptocurrencies using cash or credit cards, and are often located in convenient locations such as shopping centers, airports, and train stations.
The FCA has warned that unregulated crypto ATMs are vulnerable to money laundering and terrorist financing. Criminals often use these machines to convert large amounts of cash into cryptocurrencies, which can then be transferred anywhere in the world anonymously.
The FCA’s crackdown on unregulated crypto ATMs is part of a wider regulatory effort to combat illicit activities in the crypto industry. The FCA has been working with other regulators such as the Financial Action Task Force (FATF) to ensure that the crypto industry is complying with anti-money laundering and counter-terrorism financing regulations.
In addition to the FCA’s inspections, the authority has also been taking other measures to regulate the crypto industry in the UK. In January 2021, the FCA banned the sale of crypto derivatives to retail consumers, citing the high risk and volatility of these products. The FCA has also required crypto businesses to register with the authority and comply with anti-money laundering regulations.
As the popularity of cryptocurrencies continues to grow, regulators around the world are taking a more active role in regulating the industry. The FCA’s actions to crack down on unregulated crypto ATMs in the UK is a clear indication that the authority is committed to ensuring that the crypto industry is not used for illicit activities.
In conclusion, the FCA’s inspections of crypto ATM sites in the South West of England and Nottinghamshire are part of its ongoing effort to combat the use of unregulated crypto ATMs. The authority has warned that these machines are vulnerable to money laundering and terrorist financing, and has been taking strict measures to regulate the crypto industry in the UK. As the popularity of cryptocurrencies continues to grow, it is likely that regulators will continue to take a more active role in regulating the industry.
