Watchdog and West Yorkshire Police raid crypto ATM operators in UK first | Cryptocurrencies

Authorities have raided several websites around Leeds as part of what is believed to be the UK’s first crackdown on illegally operated crypto-ATMs.

Evidence was collected from several websites around the city that were suspected of hosting machines that allow customers to buy or convert traditional currencies into crypto-assets including bitcoin.

The raids follow a joint investigation between the Financial Conduct Authority and West Yorkshire Police’s Digital Intelligence and Investigation Unit. “The FCA will review evidence gathered during these visits and consider further potential enforcement action,” the regulator said.

Although the FCA does not regulate crypto-assets, it requires all firms dealing in crypto to register and prove that they have effective controls against money laundering and terrorist financing.

There are no crypto ATMs registered with the FCA, meaning any crypto ATM operating in the UK is doing so illegally.

DS Lindsey Brants from the cyber team at West Yorkshire Police said the force issued a warning letter to operators, telling them to stop using the ATMs or risk being investigated under UK money laundering regulations. The force then shared its findings with the FCA.

“We are delighted to be working in partnership with FCA in what we believe is a national first here in West Yorkshire,” Brants said.

The FCA said it is working with “multiple law enforcement partners”, including other local police forces as it continues to investigate other websites that may host illegal crypto ATMs.

“We will continue to identify and disrupt unregistered crypto businesses operating in the UK,” said Mark Steward, the FCA’s director of enforcement and market oversight.

“Crypto businesses operating in the UK must be registered with the FCA to combat money laundering. However, crypto products themselves are currently unregulated and high risk and you should be prepared to lose all your money if you invest in them.”