UK FCA Issues Warning Letters To Against Illegally Crypto ATM Operators

Key Points:

• The FCA of the United Kingdom is upholding its earlier declaration that any cryptocurrency ATMs functioning there are doing so unlawfully.
• The banking watchdog and West Yorkshire Police have teamed together to take on operators of cryptocurrency ATMs in Leeds, in northern England.
• Any company offering cryptocurrency-related services in the UK must register with the FCA in order to adhere to anti-money laundering and counter-terrorist financing regulations.

According to a Tuesday press release, the Financial Conduct Authority (FCA) of the United Kingdom is pursuing enforcement action against crypto ATM operators who have not registered with the FCA.

The banking watchdog and West Yorkshire Police have teamed together to take on operators of cryptocurrency ATMs in Leeds, in northern England. The West Yorkshire Police’s cyber unit claims to have detected several live crypto ATMs but does not specify how many or where they are.

“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,” the FCA emphasized.

Any company offering cryptocurrency-related services in the UK must register with the FCA in order to adhere to anti-money laundering and counter-terrorist financing regulations. Detective Sergeant Lindsey Brants of West Yorkshire Police said in a statement:

“Warning letters were issued requesting the operators cease and desist using the machines and that any breach of regulations would result in an investigation under money-laundering regulations.”

This is only one of the FCA’s several initiatives to examine the cryptocurrency market. The agency issued a warning last week to cryptocurrency companies that breaking the new ad restrictions may result in incarceration.

The FCA has already issued a warning that none of the firms dealing in digital currency that have registered with it are permitted to offer ATM services. Therefore, any cryptocurrency ATMs running in the nation are doing so outside the law.

There are now 27 bitcoin ATMs operating around the United Kingdom, according to data from Coin ATM Radar.

The action was taken shortly after cryptocurrency ATM provider Coin Cloud, located in the United States, filed for Chapter 11 bankruptcy, citing Genesis Global Holdco, an insolvent cryptocurrency lender, as its largest creditor.

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Harold

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