The FCA Strikes Back
The United Kingdom’s Financial Conduct Authority (FCA) has swung into action against crypto ATMs that are doing a nice little tango in the shadows of legality. In a bold move earlier this month, they announced inspections targeting locations suspected of illegally operating cryptocurrency ATMs across several cities, including Exeter, Nottingham, and Sheffield.
Joint Task Force: FCA and Local Authorities
With a mission to ensure the financial stability of the crypto landscape, the FCA isn’t going at it alone. They’ve teamed up with local authorities in these cities to perform raids and shut down facilities that might be offering unregistered services. This isn’t a one-off, either; they’ve been hot on the trail since earlier this year, kicking off similar operations in East London and Leeds.
Why Are They Doing This?
That’s a great question! According to Therese Chambers, the FCA’s executive director of enforcement and market oversight, this crackdown is part of a broader initiative to put a stop to illegal activities. Their actions not only disrupt unregistered businesses but also aim to inform the public about the potential dangers of unregulated crypto ATMs in the UK.
“The action we’ve taken over the past few months and wider work shows that we will act to stop illegal activity,” – Therese Chambers
Legal Powers in Play
The FCA is wielding its powers under the U.K.’s Money Laundering Regulations from 2017. Their upcoming plans include reviewing the evidence collected during these inspections, and you can bet they are ready to escalate measures if necessary.
The Crypto ATM Landscape
As of now, sources report that there were more than 15 crypto ATMs operating in the U.K. These include various operators, and here’s the kicker: it’s unclear whether any of them have the coveted FCA registration that could legitimize their operations.
Future Implications
While the current situation is murky, one thing is clear: the FCA is determined to bring unscrupulous crypto operations to heel. As regulatory scrutiny intensifies globally, the message is ringing loud and clear: if you’re planning to operate in the crypto space, compliance is key—because the FCA is watching!
