Financial Conduct Authority and West Yorkshire Police Crack Down on Illicit Cryptocurrency ATMs in the UK

B. Ali
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The Financial Conduct Authority (FCA) and West Yorkshire Police have teamed up to put an end to unregistered cryptocurrency firms operating illegally in the United Kingdom, with a particular emphasis on identifying and closing down illicit cryptocurrency ATMs.

This collaboration will enable them to gather information from various locations throughout the city, assisting in their efforts to combat the problem.

The primary goal of the operation is to identify and close down unregistered cryptocurrency firms that are operating unlawfully in the United Kingdom. As the UK rapidly works to regulate the cryptocurrency asset class and establish itself as a leading global center for cryptocurrencies, the collaborative efforts of the Financial Conduct Authority (FCA) and West Yorkshire Police are expected to aid in this endeavor.

Mark Steward, the executive head of enforcement and market monitoring at the FCA, has affirmed that cryptocurrency ATMs operating without proper registration in the UK are in violation of the law. He further emphasized that FCA registration is required for all cryptocurrency firms operating in the country to comply with anti-money laundering regulations.

Steward also highlighted his concerns about the volatile nature and lack of regulation of cryptocurrencies. Meanwhile, he hinted that the United Kingdom could soon introduce a state-backed digital currency, dubbed ‘Britcoin,’ which would be subject to regulation and governance by law.

West Yorkshire Police and FCA Crack Down on Unregistered Crypto ATMs in the UK

The West Yorkshire Police Force Cyber Team, led by Det Sgt. Lindsey Brants reportedly discovered multiple functional cryptocurrency ATMs in the region through their data collection operations. It is worth noting that the police have issued warning letters to the operators of these machines, instructing them to cease operations and warning them of potential money laundering charges for any legal violations.

The FCA and the police have collaborated on this effort, sharing their findings, and the police expressed their satisfaction that this partnership was the first of its kind in the region.

In addition, the FCA is partnering with other law enforcement agencies, including local police forces, to deactivate and prevent the operation of unauthorized cryptocurrency ATMs. The FCA will review the evidence gathered during the operations and explore potential enforcement options.

Understanding the Functionality of Cryptocurrency ATMs: A Step-by-Step Guide

Cryptocurrency ATMs provide users with the ability to purchase or convert traditional currency into digital assets. However, the owners of cryptocurrency asset exchanges, which includes those operating cryptocurrency ATMs, are required to register with the FCA and comply with the UK’s money laundering regulations. Regrettably, none of the providers of cryptocurrency ATMs have been registered with the FCA as of yet.

Consequently, the FCA has cautioned all hosts and operators of cryptocurrency ATMs about the legal consequences of not registering with the regulatory authority.

 

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Live webinar speaker and derivatives (Forex, Crypto, and Indices) analyst with a broad range of skills for evaluating financial data, investment trends, technical analysis, fundamental analysis, and the best ways to strategies investment selection.  Expertise: Trading Psychology; Speculative Positioning & Market Sentiment; Technical & Fundamental Analysis.