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- Crypto ATMs in the country are given the warning to stop all their operations by the British Financial Conduct Authority (FCA) otherwise face legal action.
- Around 81 cryptocurrency ATMs, located in different convenience stores and supermarkets, are running currently in the U.K., as per the data from Coin ATM Radar. These establishments are also given the ultimatum of shutting down these ATMs.
- Cryptocurrency ATMs offering digital asset exchange services in the UK are required to register themselves with the FCA and also follow the rulings under UK Money Laundering Regulations (MLR).
The British Financial Conduct Authority (FCA) warns cryptocurrency ATMs owners in the country to immediately stop all operations if they do not want to attract any legal action.
The order is addressed to all Bitcoin (BTC) and other cryptocurrency ATMs in Britain. Under the UK Money Laundering Regulations (MLRs), the cashpoints are declared illegal and denied FCA’s official approval. On Friday, March 11, the financial supervisor publicized the notice through its website:
Cryptocurrency ATMs that provide digital asset exchange services in the UK need to be registered with the FCA and also follow rules under UK Money Laundering Regulations (MLR). No crypto-asset firm is given the approval of providing crypto ATM services, implying that all these crypto ATMs are now illegal and should not be used by consumers.
It was also revealed in the announcement that the UK Upper Tribunal has also decided to reject the appeal filed by Gidiplus, a crypto ATM operator to continue trading, saying there is a lack of “lack of evidence as to how GIdiplus would undertake its business in a broadly compliant fashion.”
The court is still having a discussion on the appeal of the operator against the FCA for denying its registration application under the MLRs.
According to the data from Coin ATM Radar, at present around 81 cryptocurrency ATMs are being operated in the UK, located in convenience stores and supermarkets. The establishments that shelter these ATMs are also warned to shut down these crypto machines.
The FCA said that they are concerned about the ATM machine running in the UK and that’s why they will be asking operators to stop operating the machines to avoid any legal action.
In exchange for the required cryptocurrency, crypto ATMs will let users deposit cash, and further this amount will be transferred to other online crypto-wallets.
The FCA has regularly given out warnings about these digital assets that have high risk associated with them, saying there is an absence of legal and financial protections “if things go wrong”.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
