The Financial Conduct Authority (FCA) and West Yorkshire police force have raided several potential illegally operated crypto ATMS.

Following investigations into the supposed crypto rings, the FCA in a joint operation with West Yorkshire Police’s Digital Intelligence and Investigation Unit have inspected several sites aorund Leeds that were suspected to be operating illegal crypto ATMS.

Crypto ATMS are machines which allow customers to buy or convert funds into cryptoassets.

Crypto-asset exchange providers in the UK must be registered with the FCA and comply with UK Money Laundering Regulations – however, currently there are no crypto ATM operators with FCA registration, meaning any operating in the UK are doing so illegally.

In anticipation of illegal operations, the FCA gave written warning to all operators and hosts of the legal consequences of failing to register with the FCA.

While this is a UK first, it may become more common as the FCA continues to work with local police forces to crack down on and disable illegal crypto ATMS.

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Mark Steward, Executive Director of Enforcement and Market Oversight at the FCA said: “Crypto businesses operating in the UK need to be registered with the FCA for anti-money laundering purposes.

“However, crypto products themselves are currently unregulated and high-risk, and you should be prepared to lose all your money if you invest in them.”

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