UK authorities have raided a number of properties around Leeds suspected of hosting illegally operated cryptocurrency automated teller machines (ATMs).
The UK’s Financial Conduct Authority (FCA), as well as West Yorkshire Police’s Digital Intelligence Unit, were involved in the raid, which is believed to be part of the UK’s first crackdown on illegal crypto ATMs, according to Tuesday. Announcement by FCA.
The watchdog claimed that no crypto ATM operator in the UK currently holds an FCA registration. It said the agency had previously written to all operators, warning them of the legal consequences of failing to register with the FCA.
“The FCA is working with a number of law enforcement partners, including local police forces, to disrupt and deactivate illegal crypto ATMs,” the agency said.
Crypto ATMs allow customers to buy or convert traditional currencies into cryptoassets. according to data by coin atm radar27 bitcoin ATMs installed across the UK
“Unregistered crypto ATMs operating in the UK are doing so illegally,” FCA executive director Mark Steward said, adding that the regulator will continue to disrupt unregistered crypto businesses in the country.
DS Lindsey Brandts, from West Yorkshire Police’s cyber team, said they have issued warning letters to crypto ATM operators, requesting operators to stop using the machines.
“We will continue to identify and disrupt unregistered crypto businesses operating in the UK,” said Mark Steward, the FCA’s director in charge of enforcement and market oversight.
“Crypto businesses operating in the UK need to be registered with the FCA for anti-money-laundering purposes. However, currently the crypto products themselves are unregulated and high risk, and if you invest in them you will lose all your money Must be ready to lose.
The move comes days after FCA announced All crypto firms marketing to UK consumers, including those based overseas, will soon be required to comply with the new UK financial promotions regime.
The agency threatened that violations could result in imprisonment of up to 2 years. “Firms should start preparing for this regime now. We will take strict action against firms flouting these requirements, the regulator said.
In particular, data from the UK Police Unit Action Fraud Has shown Cryptocurrency fraud in the UK rose by 32% in a year to £226 million ($273 million).
Hinesh Shah, Forensic Accountant at Pinsent Masons, said, “Whenever times are tough, fraudsters always want to prey on less experienced investors by promising huge returns.”
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