In a March 8 press release, the FCA said it used its powers to inspect several sites in East London suspected of hosting illegally operating crypto ATMs, as it continues its crackdown on the illicit sector. It was a joint operation with the Metropolitan Police.
The FCA believes that unregistered crypto ATMs pose a high risk and can be used for illicit activities such as money laundering. The FCA stated that it is working with the National Economic Crime Centre to devise and coordinate action along with law enforcement agencies to initiate action against those entities that operate illegal crypto ATMs.
The FCA reminded consumers that cryptocurrencies are not regulated by the FCA and do not have any consumer protection. The regulator said that investing in cryptocurrencies involves high risks and volatility, and consumers should be prepared to lose all their money.
According to Mark Steward, Executive Director of Enforcement and Market Oversight at the FCA, “Crypto ATMs operating without FCA registration are illegal and, as today shows, we will take action to stop this. This operation, alongside last month’s action in Leeds, sends a clear message that we will continue to identify and disrupt unregistered crypto businesses in the UK.”
Committed to Consumer Protection
The FCA also reminded consumers that there are currently no crypto ATM operators registered with the FCA, which they must be to operate legally. The regulator urged anyone who uses these machines to check whether they are registered with the FCA before making any transactions.
The FCA's action against unregistered crypto ATMs is part of its wider efforts to regulate the crypto sector in the UK. The regulator has recently introduced new rules for crypto firms that require them to register with the FCA and comply with anti-money laundering standards. The FCA said that it will continue to monitor the crypto market and take action against any firms that breach its rules or harm consumers.
The UK Financial Conduct Authority (FCA) has been taking action against unregistered crypto ATMs in London. Last month, the regulatory body issued several warnings to unregistered crypto ATM providers in the UK region and ordered them to cease all operations immediately. Legal action shall be taken against providers who fail to comply with its warnings.
This highlights its commitment to protecting consumers and ensuring that businesses operating in the financial sector are doing so legally and transparently. It remains to be seen what further actions will be taken against unregistered crypto ATM providers in the future.
Written by
Samwel
Samwel is a seasoned financial analyst with over 5 years of experience covering the global stock market, Forex, and crypto market.
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