The UK’s FCA begins shutting down cryptocurrency ATMs

The UK’s Financial Conduct Authority (FCA) is cracking down on the use of cryptocurrency ATMs, as evidenced by raids in three cities. However, there are other countries that take an entirely different approach. Even as some seek to link them to money laundering and stop using them, ATMs are becoming more common in the US and Australia.

The FCA has announced yet another crackdown on cryptocurrency ATMs in the country. This week, raids were launched in Exeter, Nottingham and Sheffield.

There are no ATMs without FCA approval

The United Kingdom prohibits the operation of cryptocurrency ATMs in the absence of official permission from the Financial Conduct Authority (FCA).

Officials link its use to organized crime. In this week’s police action, local organized crime units in the area took part in the raids in a joint operation targeting unauthorized use.

Peter Highway, director of the Economic Crimes Unit In the Southwest Regional Organized Crime Unit (SWROCU), He said:

“the hackers Cryptocurrency ATMs will be used to launder illegally obtained money, so we were happy to help our colleagues at the FCA locate businesses in the area. View these machines without permission.”

Head of the economic crimes unit in the region The Yorkshire and Humber Organized Crime Commission said they were “an essential element in facilitating money laundering”.

the fca warned in The companies said in March that unregistered use of cryptocurrency ATMs was illegal and would be subject to penalties.

published by the regulatory body List of suspicious financial companies To act illegally and unauthorized. They include those who operate cryptocurrency ATMs.

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UK regulators are not taking an approach Economic freedom. As the FCA website states, the authority requires nearly all UK financial firms to be licensed or registered.

After multiple crackdowns this year, the UK has done just that Currently only 16 ATMsAnd according to ATM radar for coins.

The UK’s different approach

In its stance on ATMs, the UK is in a very different place to other developed economies and financial systems. Last month, the total number of crypto ATMs in Australia surpassed those across Asia, according to Coin ATM Radar.

at the moment, Australia has 398, or 1.2% of the global total. But North America is home to the vast majority of machines, with 31,670, accounting for 93.2% of the total.

The United States is dominant, hosting 84.6% of the global total. By far the majority of the machines are in US cities. Canada and Australia are second and third by far.

In the United States, the number of cryptocurrency ATMs has increased in recent years.

The number of Bitcoin ATMs 4212 in January 2020which represents a growth of 652% in just over three years.

But this does not mean that the use of ATMs in the United States is not regulated. The rules are very strict.

Sellers of ATMs in the United States must register with the Financial Crimes Enforcement Network. The machines in the country have a daily withdrawal limit of $3,000.

Sacha Woodward

"Wannabe writer. Lifelong problem solver. Gamer. Incurable web guru. Professional music lover."

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