Unregistered crypto ATM operators continue to feel the wrath of the FCA
The Financial Conduct Authority (FCA) is continuing its tough stance on unregistered crypto ATMs in the UK with 34 site inspections this year.
The FCA is clamping down on unregistered crypto ATMs
The UK financial watchdog has conducted investigations into sites across East London, Leeds, Exeter, Sheffield and Nottingham on suspicion of operating unregistered crypto ATMs. This includes 18 inspections in May and June alone.
Its operations have been conducted in coordination with regional law enforcement agencies and has resulted in 26 unlawful machines being shut down.
The regulator’s latest announcement cites an example of a consumer losing a £1,000 deposit at an ATM in Sheffield, with no means of contacting the operator. The FCA’s resulting investigation into the machine saw it closed down.
No protection for consumers
Steve Smart, joint executive director of enforcement and market oversight at the FCA, warns consumers to not fall into the trap of handing money over to criminals.
“If you use a crypto ATM in the UK, you are using a machine that is operating illegally,” he comments. “You will not be protected if something goes wrong, and you could lose your money.”
As was the case in the cited Sheffield ATM incident, Smart emphasises the likelihood of consumers being unable to contact the machine operator in the event of an error. “Often, we see no effective channels of communications for people to get in touch with the operator,” he says.
Smart adds that the FCA will continue to warn the public and “take appropriate enforcement action against unregistered crypto ATM operators” in accordance with the Money Laundering Regulations 2017 act.
The regulator has engaged a particularly heavy hand to this matter throughout the past year. It gave similar warnings to illicit operators back in May, stating that no crypto ATM operators currently have FCA registration.
It has also gone as far as to publish a list of cryptoasset businesses that are currently operating in the UK without the correct authorisation. Failure to comply will most likely be viewed as a criminal offence, punishable by up to two years in prison, a fine or both.
