UK: Cryptocurrency ATMs, used to exchange traditional currency with Bitcoins, busted in Leeds
Among the world’s first major crackdown on illegally operated cryptocurrency ATMs, authorities in the United Kingdom’s Leeds raided several sites suspected to be hosting machines that reportedly allowed people to buy or convert conventional currencies into cryptocurrencies such as Bitcoin.
Crypto ATMs in Britain: How were they busted?
The raids were conducted as part of the joint probe between the Financial Conduct Authority (FCA) and the West Yorkshire police force’s digital intelligence and investigation unit. “The FCA will review evidence gathered during these visits and consider further potential enforcement action,” the FCA said.
The FCA in the United Kingdom requires all firms dealing in cryptocurrencies to register. The registration entails the verification and undertaking to ensure that a crypto-related firm is not related to terrorist financing controls or money laundering operations.
Reports in the British media said that there are no crypto ATMs registered with the FCA. This means that any crypto ATM operating in the UK, if operational, remains illegal.
Crypto ATM bust: Operators were warned first
The West Yorkshire police said that they first issued a warning letter to the crypto operators. When they didn’t, the police shared its findings with the Financial Conduct Authority (FCA).
The FCA said it was working with “multiple law enforcement partners”, including other local police forces as it continues to probe other locations that may be hosting illegal crypto ATMs.
“We will continue to identify and disrupt unregistered crypto businesses operating in the UK,” Mark Steward, the FCA’s director in charge of enforcement and market oversight, was quoted as saying by The Guardian.
“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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