Authorities have raided several sites around Leeds as part of what is believed to be the UK’s first campaign against illegally operated crypto ATMs.
Evidence was collected from multiple sites around the city that were suspected of hosting machines that allowed customers to buy or convert traditional currencies into crypto assets, including bitcoin.
The raids follow a joint investigation between the Financial Conduct Authority and West Yorkshire Police’s digital intelligence and investigation unit. “The FCA will review the evidence collected during these visits and will consider further potential enforcement actions,” the regulator said.
While the FCA does not regulate crypto assets, it does require all companies that trade in crypto to register and demonstrate that they have effective anti-money laundering and anti-terrorist financing controls.
There are no FCA registered crypto ATMs, which means that any crypto ATMs that operate in the UK do so illegally.
DS Lindsey Brants of West Yorkshire Police’s cyber team said the force issued a warning letter to operators, telling them to stop using ATMs or risk investigation under UK money laundering regulations. . The force then shared its findings with the FCA.
“We are pleased to be able to work in partnership with the FCA on what we believe to be a national first here in West Yorkshire,” Brants said.
The FCA said it was working with “multiple law enforcement partners” including other local police forces as it continues to investigate other sites that may host illegal crypto ATMs.
“We will continue to identify and disrupt unregistered crypto businesses operating in the UK,” said Mark Steward, the FCA’s director in charge of market enforcement and oversight.
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“Crypto companies operating in the UK must be registered with the FCA for anti-money laundering purposes. However, crypto products themselves are currently unregulated and high risk, and you should be prepared to lose all your money if you invest in them.”
