The Financial Conduct Authority (FCA) of the United Kingdom announced on Friday that all cryptocurrency ATMs working in the country were doing so in violation of the law, and ordered their operators to immediately shut down their machines.
The chief financial regulator of the United Kingdom stated that operators were obligated to deal with UK money laundering legislation and that none had done so. The regulator stated that the ATMs, which enable users to convert cryptocurrency into fiat currency and vice versa, are subjected to minimum checks and may be used as a tool to launder money. The absence of know your customer (KYC) standards for small transactions, in particular, was questioned by the regulatory body.
According to Coinatmradar, there are approximately 70 crypto ATMs now in operation in the United Kingdom. The Financial Conduct Authority (FCA) has always taken a cautious stance on cryptocurrencies. The organization recently stated that it had opened more than 300 cases involving cryptocurrency assets between April and September 2021. It now has 50 active investigations into unlawful cryptocurrency firms, including criminal probes.
Earlier this year, it also proposed tough limitations on the promotion of cryptocurrency-related products in commercials. The agency stated in a statement on Friday that it would continue to warn customers about the unregulated and high-risk nature of cryptocurrency trading.
A significant degree of regulatory scrutiny has been directed towards crypto ATMs since their creation due to their capacity to quickly and discreetly convert cryptocurrency into fiat money. ATM providers in the United States are expected to have an effective anti-money laundering procedure in their machines, as mandated by the federal government.
As part of a stronger stance to safeguard investors from crypto-related fraud and volatility, the crypto hub of Singapore barred crypto ATMs earlier this year. To be more specific, the Monetary Authority of Singapore stated that ATMs could drive the general population to purchase cryptocurrency without taking into consideration the risks, leaving them vulnerable to the high level of volatility in the market.
On the other hand, El Salvador has widely used Bitcoin ATMs since legalizing the cryptocurrency last year. Machines can be found in over 200 sites across the country.
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