The United Kingdom’s Financial Conduct Authority (FCA) and the West Yorkshire Police’s Digital Intelligence and Investigation Unit have teamed up to combat illegal cryptocurrency ATMs in the country. The authorities recently conducted an operation in Leeds, West Yorkshire, to inspect unregistered crypto ATM operators.
In March 2022, the FCA declared crypto ATMs illegal due to money laundering concerns, and as a result, no crypto ATM in the U.K. has FCA registration. The FCA warns that crypto assets are unregulated and high-risk, and citizens might lose their total capital from crypto investments.
In addition to this operation, the FCA is working with multiple law enforcement partners, including local police forces, to disrupt and disable illegal crypto ATMs. The regulator is also in the process of seeking feedback from industry stakeholders for its second phase of crypto regulation, with the deadline for consultations set at Apr. 30, 2023.
The U.K. has been on a mission to become a global crypto hub, but it needs to track down illegal activity within the ecosystem. Last year, the country announced a special crypto cell to deal with blockchain-based crimes. The FCA also recently announced imprisonment for up to two years for non-compliance with its new rules for crypto advertising.
As the country continues to navigate the world of cryptocurrency regulation, it is important to ensure that illegal activity is detected and dealt with. The FCA’s collaboration with law enforcement partners is a step in the right direction to ensure the safety and security of citizens in the cryptocurrency space.