United Kingdom: against unregistered Bitcoin ATM

by James · February 15, 2023

In recent years, the use of Bitcoin ATMs has increased in the UK. These ATMs allow people to buy and sell Bitcoin and other cryptocurrencies using cash.

While Bitcoin ATMs can be a convenient way to enter the cryptocurrency market, they can also be used for illegal activities such as money laundering and terrorist financing.

This is why the UK’s Financial Conduct Authority (FCA) has cracked down on illegal and unregistered Bitcoin ATMs.

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FCA’s fight against illegal Bitcoin ATMs

The FCA is the regulatory body responsible for overseeing the financial services industry in the UK.

Its mission is to protect consumers, ensure market integrity and promote competition in the financial sector.

As part of its efforts to achieve these goals, the FCA has challenged the growth of unregistered and illegal Bitcoin ATMs.

According to the FCA, any company wishing to operate a Bitcoin ATM in the UK must be registered with it as a cryptocurrency company.

This is because Bitcoin and other cryptocurrencies are considered coins in their own right and the FCA has regulatory authority over all cryptocurrency companies operating in the UK.

In addition, any company operating a Bitcoin ATM must comply with Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) regulations.

Despite these regulations, there have been many reports of illegal and unregistered Bitcoin ATMs operating in the UK.

Bitcoin ATM Location

These ATMs are often located in convenience stores, bars and other public places. They allow individuals to buy and sell Bitcoin without going through a registered cryptocurrency company, which means they may not be compliant with AML and CTF regulations.

The FCA has cracked down on these illegal and unregistered Bitcoin ATMs in several ways. First, it warned the public about the risks of using unregistered ATMs. The FCA stated that unregistered ATMs may not comply with AML and CTF regulations, meaning people who use them may be at risk of unknowingly engaging in illegal activities.

Second, the FCA has taken enforcement action against firms operating unregistered Bitcoin ATMs.

In 2020, the FCA issued a warning to a company called Buy2LetCars, which operated an unregistered Bitcoin ATM in London.

The FCA stated that Buy2LetCars was not a registered cryptocurrency company and that the Bitcoin ATM was not compliant with AML and CTF regulations. The FCA also warned the public that using Buy2LetCars’ Bitcoin ATM may be illegal.

Third, the FCA worked with other regulatory bodies to combat the use of unregistered and illegal Bitcoin ATMs. In 2020, the FCA worked with the Metropolitan Police to shut down an unregistered Bitcoin ATM operating in a convenience store in London. The ATM was used to launder more than £1.5 million in cash.

Britain’s efforts to regulate the industry

The FCA’s actions against illegal and unregistered Bitcoin ATMs are part of a wider effort to regulate the cryptocurrency market in the UK.

Although cryptocurrencies such as Bitcoin have been around for more than a decade, they are still a relatively new asset class. As a result, investing in cryptocurrencies comes with a lot of uncertainty and risk.

To manage these risks, the FCA has implemented a number of regulatory measures.

For example, it requires all cryptocurrency firms operating in the UK to be registered with the FCA. In addition, these firms must comply with AML and CTF regulations.

In addition, the FCA has warned the public about the risks of investing in cryptocurrencies and issued guidance to help consumers make informed investment decisions.

While the FCA’s actions against illegal and unregistered Bitcoin ATMs may seem like a small part of the overall effort to regulate the cryptocurrency market, they are an important part of that effort.

Unregistered ATMs are often used to facilitate illegal activities such as money laundering and terrorist financing. By cracking down on these ATMs, the FCA is sending a clear message:

“Illegal activities will not be tolerated in the cryptocurrency market.”

In addition, the FCA’s actions help protect consumers who may not be aware of the risks associated with illegal and unregistered Bitcoin ATMs.

By issuing warnings and taking enforcement action, the FCA helps to ensure that consumers can make informed decisions about their investments in the cryptocurrency market.