<p>The
Financial Conduct Authority (<a href=”https://www.financemagnates.com/tag/fca/” target=”_blank” rel=”follow”>FCA</a>) has recently taken action against
unregistered cryptocurrency automated teller machines (ATMs) operating in Leeds,
East London. The FCA has warned the public against using these unregulated
machines, which may facilitate <a href=”https://www.financemagnates.com/terms/m/money-laundering/” class=”terms__main-term” id=”f30ffb65-351e-44d6-9dae-0714f08b59b2″ target=”_blank”>money laundering</a> and other criminal activities.</p><p>FCA Warns against
Unregistered Crypto ATMs</p><p>In the
press release issued by the FCA, the regulatory body stated that it has been
investigating unregistered crypto ATM providers for several months. The FCA
found that many of these providers did not have the necessary registration to
operate legally.</p><p>Cryptocurrency
ATMs have become increasingly popular in recent years, with many individuals
using them to buy and sell digital currencies, such as <a href=”https://www.financemagnates.com/tag/bitcoin/” target=”_blank” rel=”follow”>Bitcoin </a>and Ethereum.
However, the FCA warns that unregistered providers may not have the necessary
safeguards in place to prevent illegal activities such as money laundering.</p><p>”Crypto
ATMs operating without FCA registration are illegal and, as today shows, we
will take action to stop this. This operation, alongside last month’s action in
Leeds, sends a clear message that we will continue to identify and disrupt
unregistered crypto businesses in the UK,” Mark Steward, the Executive
Director of Enforcement and Market Oversight at the FCA, commented.</p><p>The FCA <a href=”https://www.fca.org.uk/news/press-releases/fca-takes-action-against-unregistered-crypto-atm-operators-leeds”>has
already taken steps</a> to prevent unregistered providers from operating in
East London. The regulatory body has issued a number of warnings to
unregistered crypto ATM providers, instructing them to cease operations
immediately. Additionally, the FCA has initiated legal proceedings against some
providers who did not comply with its warnings.</p><blockquote class=”twitter-tweet”><p lang=”en” dir=”ltr”>We will continue to identify and disrupt unregistered <a href=”https://twitter.com/hashtag/crypto?src=hash&ref_src=twsrc%5Etfw”>#crypto</a> businesses operating in the UK. <a href=”https://t.co/ctaqQIJcAG”>https://t.co/ctaqQIJcAG</a></p>— Financial Conduct Authority (@TheFCA) <a href=”https://twitter.com/TheFCA/status/1625457407915708419?ref_src=twsrc%5Etfw”>February 14, 2023</a></blockquote><p>FCA Push to Regulate
Crypto Industry</p><p>This action
by the FCA is an essential step towards regulating the cryptocurrency industry
in the UK. Cryptocurrency is a relatively new and rapidly evolving technology,
and regulatory bodies are struggling to keep up with its pace of development.
However, the FCA’s actions demonstrate that it is committed to protecting
consumers and preventing criminal activities in the cryptocurrency industry.</p><p>The UK’s
financial market supervisor <a href=”https://www.financemagnates.com/cryptocurrency/fca-seeks-crypto-firms-preparedness-for-upcoming-promotions-regime/” target=”_blank” rel=”follow”>announced last month</a> that all local and overseas
crypto companies marketing to UK consumers must comply with the country’s
upcoming new financial promotions regime.</p><p>”Acting
now will help ensure they can continue to legally promote to UK consumers. We
encourage firms to take all necessary advice as part of their
preparations,” the FCA stated.</p><p>In 2022, the
<a href=”https://www.financemagnates.com/terms/f/financial-conduct-authority-fca/” class=”terms__secondary-term” id=”4c85a54d-15e0-4e44-a214-8c55f71cb286″ target=”_blank”>Financial Conduct Authority (FCA</a>) reported that it had turned down <a href=”https://www.financemagnates.com/fintech/uk-regulator-clamps-down-on-1400-more-rogue-financial-ads-in-2022/” target=”_blank” rel=”follow”>8,582
financial promotions</a>, demanding that they be removed or modified. Additionally,
the regulatory body issued over 1,800 warnings about scams to safeguard
investors against fraudulent schemes.</p><p>Furthermore, the FCA has urged the public to exercise caution when using cryptocurrency ATMs. The
regulatory body recommends that individuals only use registered providers and
ensure they comply with anti-money laundering regulations.</p>
This article was written by Damian Chmiel at www.financemagnates.com.
