The Financial Conduct Authority Continues Terminating Unlicensed Crypto ATMs in the United Kingdom

The FCA and other law agencies investigated 36 crypto ATM locations via money laundering regulations. The FCA reported that cryptocurrency ATMs functioning without FCA registration are considered illegal.

The agency is constantly taking notable actions against the illegal operation of unregistered ATMs.Moreover, Clive Police Department released a recent report as to how crypto scammers lure and dupe victims of their assets.

The FCA's Verdict on Crypto ATM Operators in the UK

Following the investigation of 34 crypto ATMs in the United Kingdom by the nation's financial authority, the Financial Conduct Authority (FCA), the agency cancelled the operations of 26 ATM operators. The agency commenced the inspection at the beginning of 2023.

Earlier on February 14, the regulatory agency had announced on its official website, enacting an ultimatum on cryptocurrency operators in the UK.

From the report, the authority demanded that UK-based crypto ATMs comply with the rules or curb the number of illicit crypto operations.The FCA added that all virtual currency ATM providers in the UK must be registered with it and cooperate with the country's money laundering rules.

Besides that, the FCA pointed out that crypto assets are presently unregulated and extremely high risk. Therefore, investors should be wary of delving into the industry. In addition, failing to comply will lead to an investigation under the country's money-laundering regulations.

Shortly after the announcement, the FCA, alongside other related legal enforcement agencies, conducted an investigation on 36 crypto ATM locations through the powers of the money laundering regulations.

FCA Executive Director Comments on Crypto ATMs

The FCA's joint executive director of enforcement and market oversight, Steve Smart, commented against the use of cryptocurrency ATMs.

He believes that individuals using a Crypto ATM that isn't registered with the FCA in the United Kingdom may be performing transactions with criminals.

Smart also emphasized that victims of crypto-ATM-related situations will not receive government protection or the protection of machine operators either. Within May and June, 18 locations were inspected, as the Financial Conduct Authority had announced the beginning of the investigation.

The United Kingdom lawmakers are still strong in their stance against digital currencies, chiefly because of the scams related to the industry. On July 8, Clive Police Department published a report of how a cryptojacker duped a victim.

The report revealed that the crypto criminal impersonated law enforcement and duped the victim $6,000 while threatening with an arrest warrant.

It's worth noting that infosec scammers use fear strategies and pose as law enforcement workers to fool unknowing people into sending money via crypto ATMs. Moreover, it is also worthy to state that law enforcement officials, in the UK and globally, never contact people to demand payment through crypto or over the phone.

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