The UK Financial Conduct Authority (FCA) has announced the banning of every crypto ATM in the country. Crypto ATMs in the UK are operating illegally, as none of them are registered. Failing to do so may result in legal action states the FCA.
There are currently 70 crypto ATMs running in the UK says CoinATMRadar data. The FCA believes that as these machines allow holders to transact cash into crypto or vice versa, it could facilitate money laundering.
Being an ATM, there is no need for an account or background check. The FCA is concerned about the fact that there are not these checks that exchanges would usually set in place. The FCA has taken immediate action until they decide on regulations that allow these machines to ‘safely’ function.
“Crypto ATMs offering cryptoasset exchange services in the UK must be registered with us and comply with UK Money Laundering Regulations (MLR). None of the cryptoasset firms registered with us have been approved to offer crypto ATM services, meaning that any of them operating in the UK are doing so illegally and consumers should not be using them.”
FCA, March 11th
The announcement also came with a decision by the UK Upper Tribunal to reject an appeal filed by Gidiplus, a firm offering crypto ATM services, to continue trading. A “lack of evidence as to how GIdiplus would undertake its business in a broadly compliant fashion’ concluded the decision.
The FCA published a list of companies involved in cryptocurrency who have not registered their business with the financial watchdog for anti-money-laundering checks. Since the publication of the list, 110 of the companies have ceased trading.
