Crypto ATMs Face Increased Scrutiny From UK Regulator

Key Points:

• The FCA crackdown against crypto ATMs in the UK has reached 34 sites inspected in 2022, with 26 machines operating unlawfully.
• One member of the public lost £1,000 when a machine said the transaction was unsuccessful and no funds were returned.
• The FCA warns that crypto ATMs in the UK are operating illegally and consumers will not be protected if they use one and something goes wrong, such as falling victim to a scam.

Financial Conduct Authority (FCA) against crypto ATMs in the U.K. has been ongoing since March 2022.

As of May and June, another 18 sites were inspected, bringing the total number of inspections for the year to 34. The regulator has been working closely with the South West Regional Organized Crime Unit and the police forces of Greater London, Bedfordshire, and Hertfordshire to conduct these inspections.

According to the FCA, it has “disrupted” 26 machines operating unlawfully across the country. However, despite the crackdown and warnings issued by the FCA, some members of the public continue to use crypto ATMs. In one case, a person paid 1,000 British pounds ($1,290) into a crypto ATM, but no funds were returned even though the machine said the transaction was unsuccessful.

The public to be aware that any crypto ATMs in the country are operating illegally, and consumers will not be protected if they use one and something goes wrong. The FCA has issued various warnings since March 2022, urging people not to use these machines.

None of the more than 40 registered crypto companies in the U.K. is licensed to offer ATM services. Therefore, any crypto ATMs operating in the U.K. are doing so illegally, as the FCA has warned. According to data site Coin ATM Radar, there are 10 such locations in the country.

The FCA’s crackdown on these illegal crypto ATMs is crucial to protect consumers from scams and ensure that financial regulations are being followed. Furthermore, it’s important for members of the public to be informed and aware of the risks associated with using these machines, and to avoid using them altogether.

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