UK police authorities are conducting raids on crypto ATMs after UK tax authorities said they did not authorize the machines to be installed. The UK’s Financial Conduct Authority (FCA) has ordered local law enforcement to identify and disable crypto ATMs with immediate effect. The operation initially targeted the city of Leeds. West Yorkshire Police’s Digital Intelligence and Investigation Unit is also part of this initiative.
While the UK has accepted those Use of stablecoins in its financial system, the use of cryptocurrencies on a larger scale is not fully allowed there. The regulators are working on the draft Crypto Rules to protect investors from the perils of the otherwise volatile industry.
Crypto-related companies wishing to operate in the UK must register with the FCA and agree to comply with the country’s anti-money laundering laws. The FCA claims that no Crypto ATM The installer has so far sought permits and as such its operation is totally illegal in the UK.
“Crypto products themselves are currently unregulated and risky, and you should be prepared to lose all your money if you invest in them. We will continue to identify and disrupt unregistered crypto companies operating in the UK,” Bitcoin.com quoted Mark Steward, the FCA’s executive director for enforcement and market surveillance, said.
Crypto ATMs allow users to make purchases Bitcoin and other cryptocurrencies by debit and credit card via the machines. Some also allow cryptocurrencies to be sold in exchange for fiat currencies.
The British authorities initially did this in March last year raised objections against unregistered companies setting up crypto ATMs in the country.
Back then, over 80 crypto ATMs operated by an operator called Gidiplus were deactivated.
The UK has maintained a strict approach to keeping crypto promotional activity away from the masses, including the ban it has been imposed on advertisers working with crypto brands.
Last year, the FCA found in a poll that the majority of people thought cryptocurrencies were regulated after advertising and crypto ATMs became a common sight in parts of the country. This had alerted the authorities, who took action.
Notably, over the past few months, the number of newly installed crypto ATMs around the world has drastically decreased.
Only 94 crypto ATMs were installed in different parts of the world between July 2022 and January 2023, a CoinATMRadar report claimed in January.
As the UK continues to push back on the use of crypto ATMs, nations like the US, Australia, Canada and Spain have welcomed these machines.
