UK FCA warns illegally operating crypto ATMs with enforcement actions

UK FCA warns illegally operating crypto ATMs with enforcement actions
  • Cryptoasset firms shall register with FCA and must comply with UK Money Laundering Regulations (MLRs)
  • 244 unregistered crypto firms have been listed by FCA, notifying the illegally operating entities
  • 110 of the unregistered companies stopped operating since deployment, fearing enforcement actions

Britain’s Financial Conduct Authority (FCA) is warning cryptocurrency ATM operators in the UK to shut down their machines before the regulator is forced to take stringent actions.

Imperative to note that crypto asset firms are subject to FCA guidelines obligating them to register in compliance with the UK Money Laundering Regulations (MLRs) if they wish to run crypto ATMs in the UK.

However, the regulator has observed that not one cryptoasset firm in the country has registered for approval of its crypto ATM services, which means they are operating illegally.

The FCA has expressed concerns over such crypto ATM machines operating against UK’s regulatory framework and will address them by contacting the responsible operators, asking them to either shut down machines or face scrutiny.

After publishing a list of unregistered cryptocurrency firms – listing a total of 244 unregistered cryptoasset companies operating in the UK – 110 of the listed firms immediately shut down operations, fearing legal actions.

FCA continues to warn consumers of unregulated crypto assets that present greater risk leaving people utterly vulnerable in case anything goes wrong and they could potentially lose all of the money invested in crypto.

Just last month, the UK Upper Tribunal unfavoured the plea for continuation of the trade from crypto ATM service provider Gidiplus after the FCA refused the firm’s application for registration approval as a crypto asset exchange provider subject to MLRs.

The ruling underpinned FCA’s decisiveness to decline Gidiplus’ application to be recognized as a crypto asset business reasoning it with the company’s inability to meet MLRs requirements.

The authoritative bodies expressed concerns over Gidiplus’ customer due diligence, transaction monitoring, business-range, and customer risk assessments along with enhanced due diligence.

Source Credit: https://www.zdnet.com/article/uk-finance-regulator-warns-against-illegal-crypto-atms/