The inspections were part of a joint operation with the South West Regional Organised Crime Unit, Yorkshire and Humber Regional Organised Crime Unit and the Nottinghamshire Police force.
Officials from FCA said that crypto ATMs operating without FCA registration are illegal. The action they’ve taken since the beginning of 2023 and wider work shows that they will act to stop illegal activity.
The regulators went on to say that besides disrupting unregistered crypto businesses, the joint efforts have helped raise awareness of illegally operated crypto ATMs in the UK among the public. This is especially important as crypto products are high risk and not currently regulated. That means one should be prepared to lose all his money if he invest in them.
Coordinators from the Economic Crime Unit Manager at the Regional Organised Crime Units stated that criminals will use crypto ATMs to launder illegally obtained cash, so they were pleased to assist their colleagues at the FCA in targeting businesses in the region displaying these machines without authorisation. Machines such as these are a key component in the facilitation of money laundering and the movement of funds acquired through criminal activity.
Crypto ATMs allow people to buy or convert money into crypto assets. There are no crypto ATM operators registered with the FCA, which they must be to operate legally.
The FCA is working with the National Economic Crime Centre to plan and coordinate action with law enforcement partners in relation to operators of illegal crypto ATMs. This's action follows that taken in Leeds and East London, where the FCA inspected several premises suspected of hosting unregistered crypto ATMs, alongside regional organised crimes units.
The FCA will review evidence gathered during these visits and consider taking further action where necessary.
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