The United Kingdom Financial Conduct Authority (FCA) has inspected 34 cryptocurrency ATMs since the beginning of 2023, and has “disrupted” a whopping 26 of them due to noncompliance with regulations.

After the FCA posted a warning to all crypto ATM operations in the United Kingdom, which states that they must comply with regulations and avoid any illegal operations, the financial watchdog investigated 36 cryptocurrency ATMs to inspect their compliance with money laundering regulations.

Steve Smart, joint executive director of enforcement and market oversight at the FCA, is completely against the idea of using a crypto ATM in the kingdom: “If you use a crypto ATM in the U.K., you are using a machine that is operating illegally and you may be handing your money over to criminals.”

Smart has also claimed that victims of scams which involved Bitcoin (BTC) or other cryptocurrency ATMs “will not be protected” by the government nor the operator of the machine.

All ATMs must be registered with the FCA and comply with the money laundering regulations of the UK, and the nation has been subject to multiple scam attacks which capitalize on fear and impersonate law enforcement to deceive users into channeling funds via crypto ATMs.

Sources:

https://cointelegraph.com/news/uk-fca-shuts-down-26-illegal-crypto-atms

https://www.financemagnates.com/cryptocurrency/fca-shuts-down-26-illegal-crypto-atms-in-2023-continuing-its-6-year-fight/

https://twitter.com/TheFCA/status/1654413022327197696