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UK's Crackdown on Illegal Crypto ATMs Signals a Strong Regulatory Stance

In a significant enforcement action, UK regulators have uncovered an illegal crypto network involving the seizure of seven ATMs and the arrest of two suspects in southwest London.

This operation, led by the Financial Conduct Authority (FCA) in collaboration with the Metropolitan Police, highlights the ongoing fight against unlicensed digital-currency services.

The FCA reported that the seized machines were part of an unregistered exchange network that evaded essential anti-money laundering regulations.

Since January 2021, any business offering crypto exchanges or ATMs must register with the FCA and perform customer due diligence to prevent financial crimes.

Therese Chambers, the FCA’s executive director, emphasized that unregistered machines “only support crime,” asserting that there are currently no legal crypto ATMs operating in the UK.

She warned that operating an unregistered machine could result in fines and potentially jail time, reinforcing the seriousness of compliance.

Recent events highlight the severe implications, as evidenced by the recent sentencing of Olumide Osunkoya, who received a four-year prison term for running a £2.5 million unregistered network.

Globally, the UK's strict approach contrasts sharply with other countries, such as the United States, where over 29,000 crypto ATMs are operating under varying regulations.

As countries adopt diverse strategies ranging from total bans to regulatory frameworks, the UK remains firm in its zero-tolerance policy toward unregistered crypto operations.

This situation reflects a critical balancing act between protecting consumers and encouraging innovation in the rapidly evolving digital currency landscape.