The post UK Regulator Intensifies Crackdown on Crypto ATMs in Recent Months appeared first on Coinpedia Fintech News

The Financial Conduct Authority (FCA) conducted inspections of crypto ATMs in the U.K. during May and June, bringing the total number of sites inspected this year to 34. The FCA reported that it had identified 26 machines operating unlawfully across the country, which it referred to as “disruptions.”

The inspections were carried out in collaboration with the South West Regional Organized Crime Unit, as well as the police forces of Greater London, Bedfordshire, and Hertfordshire.

During the investigations, one incident came to light where a member of the public deposited £1,000 ($1,290) into a crypto ATM. Although the machine indicated that the transaction was unsuccessful, the funds were not returned.

FCA has been actively warning the public

Since March 2022, the Financial Conduct Authority (FCA) has been actively issuing warnings to the public, informing them that all crypto ATMs in the country are operating in violation of the law. The FCA emphasized that consumers will not have protection if they use these machines and encounter issues, such as falling victim to a scam.

According to the FCA, none of the more than 40 registered crypto companies in the U.K. are licensed to offer ATM services. Consequently, the FCA has cautioned that any crypto ATMs operating in the U.K. are doing so unlawfully. Coin ATM Radar, a data site, reports that there are 10 such locations in the country.

The crypto scene in the UK has experienced significant growth and development in recent years. The country has emerged as a prominent hub for cryptocurrency-related activities, with a thriving ecosystem of companies, exchanges, and blockchain projects.

The UK government and regulatory authorities have shown a mixed stance towards cryptocurrencies. While they recognize the potential of blockchain technology and digital assets, they also emphasize the need for proper regulation and consumer protection.

The Financial Conduct Authority (FCA) is the primary regulatory body overseeing cryptocurrency activities in the UK. It has implemented measures to prevent money laundering, and fraud, and ensure compliance with anti-money laundering (AML) and know-your-customer (KYC) regulations.