The United Kingdom's Financial Conduct Authority is cracking down on unregistered cryptocurrency
Jessie A Ellis Feb 16, 2023 09:20
West Yorkshire crypto ATM operators were penalized by the Financial Conduct Authority.
The Financial Conduct Authority (FCA), which is in charge of regulating the financial sector in the United Kingdom, is planning to go after unregistered bitcoin automated teller machines (ATMs).
The Financial Conduct Authority (FCA) and the cyber unit of the West Yorkshire Police have taken action against a number of locations in and around the city of Leeds that are suspected of hosting illegally operating cryptocurrency ATMs.
When the news was announced on February 14, the Financial Conduct Authority (FCA) noted that there are no crypto ATM operators in the United Kingdom currency who are registered with the FCA. All cryptocurrency exchange providers, including operators of cryptocurrency ATMs, are required to be registered with the Financial Conduct Authority (FCA) and adhere to the money laundering legislation of the United Kingdom, according to the authority.
Mark Steward, executive director of enforcement for the FCA, was quoted as saying that unregistered cryptocurrency ATMs that operate in the United Kingdom are engaging in illegal activity. Steward also stated that the FCA will continue to disrupt unregistered cryptocurrency businesses in the country. The executive said that crypto goods are "currently unregulated and high-risk," advising clients to be ready to lose all of their money if they invest in cryptocurrency.
According to the statements of police detective sergeant Lindsey Brants, local enforcement officials have sent multiple warning letters to operators of cryptocurrency ATMs, urging that they stop utilizing the machines immediately. He continued by saying that any violation of the restrictions will result in an inquiry under the money-laundering regulations.
According to the findings of Coin ATM Radar, there are at least 28 different sites in the United Kingdom that provide Bitcoin (BTC) ATMs. This means that the action that the FCA plans to take against cryptocurrency ATMs is likely to have a significant impact on the number of ATM operators. According to the statistics, more than half of these cryptocurrency ATM locations can be found in the city of London, with additional sites close to the cities of Birmingham, Manchester, and Nottingham.
This is not the first time that the Financial Conduct Authority has taken action against cryptocurrency ATMs in the United Kingdom. The same body published a similar declaration on the termination of Bitcoin ATMs in the country in March 2022, calling on ATM operators to "close down or face further action." The announcement related to the discontinuation of Bitcoin ATMs in the country.
At the time of this writing, the Financial Conduct Authority (FCA) in the United Kingdom has granted registration to a total of 41 cryptocurrency businesses. These organizations include platforms like as Gemini, Zodia Custody, Bitpanda, and Revolut, amongst others.
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