UK regulator shuts down more illegal cryptocurrency “machines”: details

Great Britain Financial Regulator said on Tuesday it had stopped 26 ATMs across the country for illegally offering cryptocurrencies and warned consumers they could lose all their money.

A citizen deposited a thousand pounds into a crypto ATM in Sheffield, northern England, to buy cryptocurrency but was unsuccessful cryptocurrency or funds were returned, the FCA said.

The watchdog, in a coordinated effort with other law enforcement agencies, inspected 34 sites suspected of hosting crypto ATMs since the beginning of this year and “failed” 26 machines.

“If you use a crypto ATM in the UK, you are using a machine that is operating illegally and you may be giving your money to criminals,” said Steve Smart, FCA’s joint chief executive for enforcement and market surveillance, in a statement.

“You’re not protected if something goes wrong and you could lose your money,” Smart said.

UK consumers buying crypto assets will for the first time get a 24-hour “cooling off” period from October as part of stricter marketing rules. revealed by the Financial Regulator in June.

Crypto assets like bitcoin face little direct regulation around the world, but regulators are taking a closer look at FTX’s demise over the past year, which caused billions of dollars in losses to millions of investors, some of them in the UK.

The Financial Conduct Authority (FCA) said refer-a-friend bonuses would also be removed for crypto buyers and that those promoting such assets must post clear risk warnings and ensure the advertising is clear, fair and not misleading.

© Thomson Reuters 2023

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