The Financial Conduct Authority (FCA) has recently taken action against unregistered cryptocurrency automated teller machines (ATMs) operating in East London. The FCA has warned the public against using these unregulated machines, which may facilitate money laundering and other criminal activities.
FCA Warns Against Unregistered Crypto ATMs
In the press release issued by the FCA, the regulatory body stated that it has been investigating unregistered crypto ATM providers for several months. The FCA found that many of these providers did not have the necessary registration to operate legally.
Cryptocurrency ATMs have become increasingly popular in recent years, with many individuals using them to buy and sell digital currencies, such as Bitcoin and Ethereum. However, the FCA warns that unregistered providers may not have the necessary safeguards in place to prevent illegal activities such as money laundering.
"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," Mark Steward, the Executive Director of Enforcement and Market Oversight at the FCA, commented.
The FCA has already taken similar steps to prevent unregistered ATM providers from operating in Leeds. The regulatory body has issued a number of warnings to unregulated crypto companies, instructing them to cease operations immediately. Additionally, the FCA has initiated legal proceedings against some providers who did not comply with its warnings.
FCA Push to Regulate Crypto Industry
This action by the FCA is an essential step towards regulating the cryptocurrency industry in the UK. Cryptocurrency is a relatively new and rapidly evolving technology, and regulatory bodies are struggling to keep up with its pace of development. However, the FCA's actions demonstrate that it is committed to protecting consumers and preventing criminal activities in the cryptocurrency industry.
The UK's financial market supervisor announced last month that all local and overseas crypto companies marketing to UK consumers must comply with the country's upcoming new financial promotions regime.
"Acting now will help ensure they can continue to legally promote to UK consumers. We encourage firms to take all necessary advice as part of their preparations," the FCA stated.
In 2022, the Financial Conduct Authority (FCA ) reported that it had turned down 8,582 financial promotions, demanding that they be removed or modified. Additionally, the regulatory body issued over 1,800 warnings about scams to safeguard investors against fraudulent schemes.
Furthermore, the FCA has urged the public to exercise caution when using cryptocurrency ATMs. The regulatory body recommends that individuals only use registered providers and ensure they comply with anti-money laundering regulations.
