UK Seizes 7 Illegal Crypto ATMs, Arrests 2 Amid $2.5M Fraud Crackdown
UK Cracks Down on Illicit Crypto Operations: 7 Unauthorised ATMs Seized, 2 Arrested. The UK has intensified its efforts to tackle illegal...
Quick overview
- The UK has seized 7 unauthorized cryptocurrency ATMs and arrested 2 individuals in a crackdown on illegal crypto operations.
- The Financial Conduct Authority (FCA) emphasizes that operating crypto ATMs without registration is illegal and supports financial crime.
- This action follows a recent conviction related to an unregistered crypto ATM business, highlighting the FCA's zero tolerance approach.
- Globally, countries are tightening regulations on crypto ATMs to protect consumers and ensure compliance with financial laws.
UK Cracks Down on Illicit Crypto Operations: 7 Unauthorised ATMs Seized, 2 Arrested
The UK has intensified its efforts to tackle illegal crypto activities with the seizure of 7 unauthorised cryptocurrency ATMs and the arrest of 2 individuals. The Financial Conduct Authority (FCA) and the Metropolitan Police conducted coordinated raids at 4 locations in south west London as part of an investigation into an unregistered crypto exchange and potential financial crimes.
Illegal ATMs Fuel Financial Crime
The FCA said operating crypto ATMs or exchanges without registration is illegal in the UK. All such businesses must meet anti-money laundering (AML) standards including identity verification and source of funds tracking. FCA Executive Director Therese Chambers said “There are no legally operated crypto ATMs in the UK” and warned that unregistered machines “only support crime”.
This week’s raids show the agency’s zero tolerance approach after the first conviction in such a case earlier this year. In that case Olumide Osunkoya was sentenced to 4 years for running a £2.5 million crypto ATM business through his company GidiPlus. He used forged documents, false identities and criminal funds and charged markups of up to 60% without FCA approval.
Global Scrutiny Growing
While the UK has a total ban on crypto ATMs, other countries are introducing different regulatory frameworks. The US has the most with over 29,000 crypto ATMs but is facing increasing scrutiny:
- Nebraska requires licenses, transaction limits and scam refund policies.
- Spokane, Washington has banned crypto ATMs altogether due to consumer protection concerns.
New Zealand has a total ban while Australia introduced new measures this month:
- Per transaction cash limits
- Scam alerts
- Increased oversight after a surge in Bitcoin ATM related fraud
These developments show a global trend towards tighter regulation as governments try to protect consumers from financial crime and ensure crypto compliance with existing laws.
FCA Sends Clear Message
The FCA is clear: unregistered crypto activity will not be tolerated. Businesses must register with the FCA before operating and using unauthorised crypto ATMs puts operators at risk of criminal liability. Consumers should be aware and avoid using unregulated machines.
The suspects in the London case are free on bail and no charges have been filed yet but the FCA has reiterated its commitment to protecting financial integrity and cracking down on crypto misuse.
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