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Crypto ATMs count has been soaring as the industry garners mainstream adoption. Where several ATMs are being established across the globe, regulators have begun to eye the industry. Recently, the United Kingdom’s Financial Conduct Authority (FCA) has warned all the consumers not to use these digital assets ATM in their soil, as they are doing so illegally. Furthermore, the regulators highlighted that any machines offering cryptocurrency exchange services in the nation must be registered and comply with their Money Laundering Regulations (MLRs).
Crypto ATMs compliance concerns UK regulators
The Financial Conduct Authority has cited that none of the cryptocurrency firms registered with them have been approved to offer ATM services. This means any of such machines operating in the nation are illegally established and consumers should not use them.
Besides, the regulators also underscored that they are concerned about the rising count of crypto ATMs operating in the UK. Therefore, they are looking to contact the operators instructing that the machines need to be shut down or they would face further action.
UK regulators believes cryptocurrencies are high-risk
In the current scenario the FCA lists more than 240 cryptocurrency firms on its soil. However, none of the firms are registered with the regulator. However, it is said that 110 of the firms are no longer operational, which means 130 firms are still carrying on their businesses illegally.
Last month, the Upper Tribunal, UK court ruled against Gidiplus, which appealed against the regulator’s refusal to grant its application for registration under the Money Laundering Regulations. At the time, FCA explained that the judge concluded that there was a lack of evidence as to how Gidiplus would undertake its business in a broadly compliant fashion. The FCA also highlighted that they regularly warn consumers that cryptocurrencies are unregulated and high-risk which means individuals are very unlikely to have any protection if things go wrong.
Hence, the regulators believe that the users should be prepared to lose all their funds if they choose to invest in them.
