Crypto ATMs Under Scrutiny as UK Watchdog Clamps Down

The UK’s financial watchdog, the Financial Conduct Authority (FCA), has set its sights on cryptocurrency ATMs in its latest crackdown on the crypto industry. The FCA is concerned about the use of crypto ATMs for illicit activities, such as money laundering and terrorist financing.

Crypto ATMs are similar to traditional ATMs, but instead of dispensing cash, they allow users to buy and sell cryptocurrencies such as Bitcoin, Ethereum, and Litecoin. There are currently around 200 crypto ATMs in the UK, and their popularity has been growing rapidly over the past few years.

British authorities are targeting crypto ATMs in their latest effort to disrupt unauthorized businesses in the sector. The regulator will review evidence gathered during its visits and consider taking further action where necessary, according to a statement. There are currently no FCA-registered crypto ATMs in the country, it added.

The action was carried out with the Metropolitan Police and follows a similar effort in Leeds last month. The watchdog, which found in 2021 that about 4.4% of British adults held crypto assets, has repeatedly warned investors they risk losing all their money.

Regulators globally are tightening rules on crypto amid a wave of company collapses triggered by the ongoing rout in digital asset prices. The price of a Bitcoin has fallen to about $22,000, from a peak of more than $67,000 in late 2021.

ATMs that allow customers to exchange fiat currency for crypto proliferated when the price of Bitcoin exploded — though the “crypto winter” has already led to a sharp fall in activity.

While crypto ATMs have been used for legitimate purposes, such as providing access to cryptocurrencies for those without a bank account, the FCA’s crackdown is a reminder that the crypto industry remains a high-risk area for financial crime.