• The Financial Conduct Authority (FCA) in the U.K. is continuing its crackdown on unlawful crypto ATMs, with recent raids in Exeter, Nottingham, and Sheffield.
• The FCA says that none of the 40 or so registered crypto companies are permitted to offer cash-to-crypto conversion services.
• There are currently 17 crypto ATMs in the U.K., but the FCA is reviewing evidence gained from its inspections to determine what further action, if any, might be taken.
U.K.’s Financial Regulator Cracks Down On Unregistered Crypto ATMs
The Financial Conduct Authority (FCA) in the United Kingdom is taking a stand against unlawful crypto ATMs operating without FCA registration by raiding sites in Exeter, Nottingham and Sheffield. This comes after enforcement action was taken against similar sites in Leeds and East London earlier this year.
The Danger of Unregistered Crypto ATMs
The FCA has expressed concern over unregistered cash-to-crypto converters as they pose a risk for money laundering threats and are thus illegal according to current regulations. As of now there are 17 such devices operating throughout the country, yet none of these have been registered with the FCA as required by law.
Evidence Is Being Reviewed
The regulator has stated that it is currently reviewing evidence gained from its inspection to decide what further action should be taken regarding this matter if necessary. However, no details have been provided about possible punishments or other measures that will be implemented at this time.
Registered Companies Not Allowed To Offer Cash-To-Crypto Conversion Services
According to the FCA’s statement on Friday, none of the 40 or so registered crypto companies currently active within U.K.’s borders are allowed to offer cash-to-crypto conversion services either due to their potential risk for money laundering threats.
Conclusion
This crackdown on unregistered crypto ATMS sends a strong message from the financial regulator about how serious they take any potential money laundering risks associated with cryptocurrency trading activities within their borders and shows their willingness to act quickly against any operators found breaking those laws accordingly..