The UK’s Financial Conduct Authority (FCA) has warned crypto ATM operators in the UK to shut down their machines or face enforcement action.
Crypto asset companies are required to registered with FCA and compliance UK Money Laundering Regulations (MLR) if they want to operate crypto ATMs in the UK.
However, according to the regulator, none of the crypto companies have applied for approval to provide crypto ATM services and are therefore operating illegally.
The FCA said: “We are concerned about crypto ATMs operating in the UK and will therefore be contacting the operators with instructions that these machines must be shut down or faced with other actions”.
FCA said since it publishes list of unregistered crypto companies may have resumed business, 110 of which have ceased operations. At the time of writing, there are 244 UK crypto companies listed as unregistered.
The FCA warns: “We regularly warn consumers that cryptocurrencies are unregulated and high-risk, meaning that it is very difficult for people to get any protection if things go wrong. make mistakes, so people should be prepared to lose all their money if they choose to invest in them”.
Last month, the Supreme Court rule against Gidiplus, a crypto ATM service company that wants to continue trading, after it appealed the FCA’s decision to deny its application as a crypto exchange service provider under MLRs.
Judge Timothy Herrington concluded that there was “a lack of evidence” as to how Gidiplus would conduct its business in a “widely compliant manner”.
This ruling echoes the FCA’s original decision to refuse to register Gidiplus as a cryptocurrency business. It believes the company has failed to meet the MLR’s requirements, noting that the company has “particular concerns regarding Gidiplus’s enterprise-wide and customer risk assessment, customer due diligence, strengthening transaction appraisal and supervision”.
The FCA also accused Gidiplus co-owner Olumide Osunkoya of failing to demonstrate that he has “adequate knowledge, skill and experience of Gidiplus’ obligations under the MLRs”.
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