Yahoo Finance FCA takes action against illegal crypto ATMs in Leeds
The UK's financial regulator has swooped in to inspect several sites across the city of Leeds, which they suspected to be hosting illegally operated cryptocurrency ATMs.
Crypto ATMs are similar to normal cash machines but they enable customers to purchase or convert funds into cryptoassets, such as bitcoin (BTC-USD) or ethereum (ETH-USD).
The Financial Conduct Authority (FCA) claimed that it had gathered evidence from several sites around Leeds as part of a joint operation with West Yorkshire Police’s Digital Intelligence and Investigation Unit.
In an announcement about the action, Mark Steward, executive director of enforcement and market oversight at the FCA, said: “Unregistered crypto ATMs operating in the UK are doing so illegally.
“We will continue to identify and disrupt unregistered crypto businesses operating in the UK.
“Crypto businesses operating in the UK need 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.”
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Detective Lindsey Brants of the Force Cyber Team at West Yorkshire Police said: “Having conducted intelligence gathering work across West Yorkshire, we soon established the locations of several live crypto ATMs.”
“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.
“We are pleased to be able to work in partnership with the FCA in what we believe is a national first here in West Yorkshire.”
The FCA did not say what further action they will take, but said that after assessing evidence, they may take further enforcement measures.
In the UK, crypto ATM operators, as well as other cryptoasset exchange providers, are required to register with the FCA and comply with the regulator's money laundering regulations.
However, the FCA claims that there are no crypto ATM operators currently registered with the financial regulation body.
The agency has warned anyone who operates a crypto-ATM of legal consequences for non-compliance.
The FCA announced that it had the powers to work with local police forces to dismantle illegal crypto ATMs.
