FCA raids and inspects suspected illegal crypto ATMs

The Financial Conduct Authority (FCA) announced a crackdown on cryptocurrency vending machines on Monday, reporting that it had entered and inspected a number of sites around Leeds suspected of hosting illegally-operated crypto ATMs.

It said it had gathered evidence from several sites around the city as part of a joint operation with West Yorkshire Police’s Digital Intelligence and Investigation Unit.

“Unregistered crypto ATMs operating in the UK are doing so illegally,” said Mark Steward, executive director of enforcement and market oversight at the FCA.

“We will continue to identify and disrupt unregistered crypto businesses operating in the UK.”

Steward said crypto businesses operating in the UK were required to be registered with the FCA for anti-money laundering purposes.

“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.”

The FCA described crypto ATMs as machines that allow customers to buy or convert funds into ‘cryptoassets’.

It confirmed that no crypto ATM operators currently held FCA registration.

The FCA previously wrote to all operators and hosts warning of the legal consequences of failing to register, adding that it was working with multiple law enforcement partners, including local police forces, to “disrupt and disable” illegal crypto ATMs.

It said it would review evidence gathered during the visits, and consider further potential enforcement action.

“Having conducted intelligence gathering work across West Yorkshire, we soon established the locations of several live crypto ATMs,” said Detective Sergeant Lindsey Brants of the ‘Force Cyber Team’ at West Yorkshire Police.

“Warning letters were issued requesting the operators cease and desist using the machines and that any breach of regulations would result in an investigation under money-laundering regulations.

“We then shared our findings with the Financial Conduct Authority.”

Reporting by Josh White for Sharecast.com.