UK watchdog shuts more illegal cryptocurrency 'machines'

LONDON (Reuters) – The Financial Conduct Authority (FCA) of Britain has taken action against 26 crypto ATMs located throughout the country, citing illegal operations and potential losses for consumers. The FCA issued a warning, highlighting a recent incident in Sheffield, northern England, where a member of the public lost £1,000 after attempting to purchase cryptocurrencies from a crypto ATM. No funds or cryptocurrencies were returned. In an effort to address this ongoing issue, the FCA, in conjunction with other law enforcement agencies, has inspected 34 locations suspected of hosting these ATMs since the beginning of the year, resulting in the disruption of 26 machines.

Steve Smart, the joint executive director of enforcement and market oversight at the FCA, strongly emphasized the risks associated with using these illegal crypto ATMs. “If you use a crypto ATM in the UK, you are using a machine that is operating illegally and you may be handing your money over to criminals,” he stated. Smart further highlighted that using these machines puts users at significant risk, as they will not be protected if something goes wrong and could potentially lose their money.

This crackdown follows the FCA’s objective to safeguard consumers and maintain the integrity of the financial system. The FCA urges the public to exercise caution and only use regulated channels to engage in cryptocurrency transactions.

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