Crackdown on Illegal Crypto ATMs in the UK

The Financial Conduct Authority (FCA) and a number of other law enforcement agencies have been working to investigate the unregulated crypto ATM sector in the UK. As part of their efforts, they have conducted 34 inspections across the country since 2023 and successfully disrupted 26 operations that were operating illegally. Steve Smart, Joint Executive Director of Enforcement and Market Oversight at the FCA, has warned against using these machines, as customers are not protected if something goes wrong and they may lose their money. During two months of inspections, 18 sites suspected of hosting crypto ATMs were identified and investigated. In one particular case, a member of the public paid £1,000 into a machine in Sheffield which took the money but never returned the crypto purchased. After attempting to contact the operator of the machine via WhatsApp and being unable to get in touch, the FCA's inspection team was able to successfully shut down the machine. The FCA warns that it will continue to warn the public about the risks of using crypto ATMs and take appropriate action against operators.