The UK Financial Watchdog Cracking Down On Unregulated Crypto ATMs In London

Image by Albrecht Fietz from Pixabay

Regardless of the state of the cryptocurrency market, regulators have kept putting pressure on a variety of subindustries within the cryptocurrency business.

This morning, the United Kingdom’s Financial Conduct Authority began the process of pursuing legal action over unregulated cryptocurrency ATMs located in the city of London.

The crypto ATM is one of the emerging innovations that the cryptocurrency sector has given birth to throughout the past few years. It is a standalone gadget that allows users to buy and sell cryptocurrencies like Bitcoin and Ethereum for fiat currency, and now authorities are coming for it.

 

A Crackdown by the UK FCA on Cryptocurrency ATMs

Even though cryptocurrency ATMs have become increasingly popular over the past few years, the Financial Conduct Authority (FCA) views this phenomenon as a risk because it is neither regulated nor registered under any legal authority.

In a news release that was published earlier today, Mark Steward, Executive Director of Enforcement and Market Supervision at the FCA, stated (1) that

“Crypto ATMs functioning without FCA certification is illegal” and “we [FCA] will take action to prohibit this.”

Since then, the Financial Conduct Authority has been conducting a widespread campaign against cryptocurrency ATMs in London.

The regulatory body delivered a number of warnings and an order to immediately cease all operations to operators of unregistered cryptocurrency ATMs in the United Kingdom region late last month.

The FCA stated that legal action would be taken against providers who do not comply with its warnings.

The FCA believes that unregistered cryptocurrency ATMs provide a “high risk” and could, as a result, be used to facilitate illegal activities such as money laundering.

The Financial Conduct Authority (FCA) has stated that it will only continue to utilize its

“powers to audit certain sites in East London accused of hosting illegally running cryptocurrency ATMs.”

In addition, the Financial Conduct Authority (FCA) announced that it is presently collaborating with the “National Economic Crime Centre to prepare and coordinate actions with law enforcement agencies against owners of unlawful cryptocurrency ATMs.”

In addition to that, it is currently participating in a joint operation with the local PD to check many locations by making use of its enforcement capabilities.

 

FCA Is in Charge of Regulating Crypto Companies

Many authorities in charge of regulating financial markets, like the Financial Conduct Authority (FCA), have prioritized staying current on all of the latest developments in the cryptocurrency business.

Early this year, the FCA addressed the regulation of crypto companies in the United Kingdom, forcing them to seek regulatory permission

Only 41 of the approximately three hundred crypto companies that requested regulatory certification were granted clearance by the Financial Conduct Authority (FCA). They rejected the remaining applications and sent them to the relevant law enforcement agencies.

Over this time, a declining tendency has been prevalent across the cryptocurrency market. The total capitalization of the global cryptocurrency market has decreased by approximately $10 billion, or 1.1%, over the past 24 hours

.

Leave A Reply

Your email address will not be published.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More