FCA Shuts Down Bitcoin ATMs Within the U.K
The United Kingdom’s financial regulator, the Financial Conduct Authority (FCA), has told all unregistered crypto ATM operators to stop all further transactions or face legal action, as per a statement released today.
The regulatory agency added that cryptocurrency ATMs with crypto exchange services must comply with the UK’s Money Laundering Regulations (MLR), as well as be registered with the FCA.
The FCA made reference to a lack of regulatory oversight, the high-risk potential of fluctuating assets, and how important it is to uphold the reputation of money laundering regulations as the main reason for this enforcement.
“None of the crypto asset firms registered with us have been approved to offer crypto ATM services, meaning that any of them operating in the UK are doing so illegally and consumers should not be using them,” the FCA said.
“We are concerned about crypto ATM machines operating in the UK and will therefore be contacting the operators instructing that the machines be shut down or face further action,” the regulator added.
The FCA has given registration approval to 33 companies since Aug. 2020 under the MLR framework. These companies include Gemini Europe Ltd, Kraken‘s holding company Payward Ltd, Galaxy Digital UK Limited, and more recently added to the list on Jan. 14, eToro (UK) Ltd.
Additionally, 22 other companies were given temporary registration status until March 31st, 2022, at which time the verdict on their applications will be determined. These companies include the likes of Blockchain Access UK Limited (blockchain.com), Copper Technologies (UK) Limited, Revolut Ltd, and Wirex Ltd, among others.
Data recorded by Coin ATM Radar claims that there are 81 Bitcoin ATMs within the United Kingdom, operated by eight institutions. According to the FCA, none of the 33 approved companies have filed the documents to attain the license required to operate Bitcoin ATMs within the country, in turn making the 81 ATMs essentially illegal.
The ruling comes at a time when crypto is being watched very keenly by regulatory powers, just this week President Joe Biden laid the groundwork for regulation by signing an executive order. Individuals within the industry are split on whether this could be good or bad, I for one argue that this was inevitable.