The Financial Conduct Authority (FCA) of the United Kingdom (UK) said that it has begun enforcing laws against unregistered crypto ATM businesses in the area.
In over 80 countries around the world, there are roughly 38450 ATMs that let customers withdraw their cryptocurrency in exchange for cash. According to Coin ATM Radar statistics, roughly 28 ATMs have been deployed specifically for the United Kingdom.
But according to the FCA, none of the ATMs operating in the UK are legitimate because they don’t follow the rules. The regulatory body claimed that it had previously advised the operators of unauthorized crypto ATMs to stop operating or risk enforcement action.
The FCA said on February 14 that it has teamed up with the West Yorkshire Police Intelligence unit to track down and stop all illicit crypto operators operating in the area. The joint effort located the unlicensed cryptocurrency ATMs around West Yorkshire. According to money laundering laws, ATM operators would be under investigation.
Since the FCA will continue to discover and shut down illicit crypto businesses, FCA executive Mark Steward stated that crypto businesses in the U.K. must register with the FCA for anti-money laundering purposes.
The FCA claimed that because crypto assets are high-risk investments, they must be governed similarly to other traditional markets. It issued a warning that cryptocurrency companies that disobey the financial promotional rules risk up to two years in prison.
Ashley Alder, the chair of the FCA, also declared that his organization would enforce tough regulations on cryptocurrency trading in the UK because many companies knowingly aid in money laundering.
