- The FCA claims it conducted cooperative investigations with local law enforcement.
- The UK seems to be planning to enforce considerably stricter crypto rules.
Recently, the Financial Conduct Authority (FCA) in the United Kingdom has been clamping down on cryptocurrency ATMs. That are not properly registered. The authority claims to have recently visited and investigated a number of locations near Leeds. It is a city in Northern England that was suspected of housing illegally running crypto ATMs.
The FCA claims it conducted cooperative investigations with local law enforcement. Including the Digital Intelligence and Investigation Unit of the West Yorkshire Police.
FCA’s executive director of enforcement and market oversight Mark Steward stated:
“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.”
Strict Crypto Rules Post FTX Fiasco
According to the statement, the FCA plans to analyze the information it gathered during these inspections. And will consider future action. The United Kingdom seems to be planning to enforce considerably stricter crypto rules across the board, especially after the FTX fiasco and not just focusing on the few crypto ATMs.
Moreover, according to West Yorkshire police Force Cyber Team Detective Sergeant Lindsay Brants, warning notices were sent demanding the operators stop and desist from using the ATMs and that any infringement of laws would result in an inquiry under money-laundering rules.
Furthermore, the Financial Conduct Authority sent a letter to all crypto ATM operators and hosts in March 2022, warning them of the legal ramifications of operating crypto ATMs without an FCA license. Although there is no explicit legislation against cryptocurrency ATMs in the UK, none have received FCA clearance so far.