FCA cracks down on crypto ATMs in Leeds
The UK’s financial regulator has swooped in to inspect several sites across the city of Leeds, which they suspected of hosting illegally operated cryptocurrency ATMs.
Crypto ATMs are similar to regular ATMs, but they enable customers to buy or convert funds into crypto assets, such as bitcoin (BTC-USD) or ethereum (ETH-USD).
The Financial Conduct Authority (FCA) claimed it had gathered evidence from several locations around Leeds as part of a joint operation with West Yorkshire Police’s Digital Intelligence and Investigation Unit.
Announcing the action, Mark Steward, executive director of enforcement and market oversight at the FCA, said: “Unregistered crypto-ATMs operating in the UK are doing so illegally.
“We will continue to identify and disrupt unregistered crypto businesses operating in the UK.
“Crypto companies 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.”
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Detective Constable Lindsey Brants of the Force Cyber Team at West Yorkshire Police said: “Having carried out intelligence gathering work across West Yorkshire, we soon established the locations of several live crypto ATMs.”
– Warning letters were issued asking the operators to stop using the machines and that any breach of the regulations would result in an investigation under the money laundering regulations. We then shared our findings with the Financial Conduct Authority.
“We are delighted to be working in partnership with FCA in what we believe is a national first here in West Yorkshire.”
The FCA did not say what further action it will take, but said that after considering evidence, it may take further enforcement action.
In the UK, crypto-ATM operators, as well as other crypto-asset exchange providers, are required to register with the FCA and comply with the regulator’s anti-money laundering regulations.
However, the FCA claims that there are no crypto-ATM operators registered with the financial regulator.
The agency has warned anyone operating a crypto-ATM of legal consequences for non-compliance.
The FCA announced that it was empowered to work with local police forces to dismantle illegal crypto ATMs.
