FCA Shuts Down 26 Crypto ATMs

The Financial Conduct Authority (FCA), the United Kingdom’s financial regulator, “disrupted” 26 of the 34 cryptocurrency ATMs it visited and inspected since the beginning of 2023.

The FCA issued an ultimatum to all crypto ATM operators in the United Kingdom on February 14: comply with regulations or cease illegal operations.

In response to the warning, the FCA and other law enforcement agencies used their authority under anti-money laundering regulations to investigate 36 cryptocurrency ATM locations.

Steve Smart, joint executive director of enforcement and market oversight at the FCA, argued against the use of all crypto ATMs:

“If you use a crypto ATM in the U.K., you are using a machine that is operating illegally and you may be handing your money over to criminals.”

Smart added that victims of scams involving crypto or Bitcoin ATMs “will not be protected” by the government or the operator of the machines.

In May and June, 18 locations were inspected, just as the FCA publicly announced the launch of the inspection campaign.

All cryptocurrency exchanges and ATMs must register with the FCA and adhere to U.K. anti-money laundering regulations.

On July 8, the Clive Police Department released a report detailing how a crypto scammer impersonating law enforcement stole $6,000 from an unsuspecting victim while threatening an arrest warrant.

Scammers use fear tactics and impersonate law enforcement officials to deceive victims into transferring funds through crypto ATMs.

It is essential to note, however, that law enforcement agencies never demand payment via telephone or cryptocurrency.