“FCA Cracks Down on Illegally Operated Crypto ATMs in Leeds, UK”
The Financial Conduct Authority (FCA) recently conducted inspections on several sites near Leeds, in the North of England, that were suspected of hosting illegal crypto ATMs. The FCA worked in collaboration with local police forces, including the West Yorkshire Police’s Digital Intelligence and Investigation Unit, as part of the joint investigation.
“Crypto Businesses Must Register with FCA for Anti-Money Laundering Purposes”
According to Mark Steward, the FCA’s executive director of enforcement and market oversight, all crypto businesses operating in the UK must be registered with the FCA for anti-money laundering purposes. This move comes as the links between crypto ATMs and money laundering, as well as their potential ties to organized crime, have become increasingly clear.
“Crypto ATM and Money Laundering: A Global Concern”
The use of crypto ATMs for money laundering is a global concern, with a 2020 study from the U.S. Drug Enforcement Agency (DEA) showing how transnational criminal organizations have used these ATMs to launder illicit drug money, alongside other traditional methods.
“UK Implements Harsher Crypto Regulations”
The UK is not just cracking down on illegal crypto ATMs, but is looking to implement harsher regulations for the entire crypto industry. This month, the UK Treasury released a consultation paper outlining new rules that may require crypto firms operating in the UK to fulfill a stricter set of requirements, similar to those in traditional financial services.
“UK Companies Advertising Crypto Products Must Seek FCA Authorization”
In addition, companies interested in advertising crypto products in the UK must now seek authorization from the FCA. Firms that do not follow one of the four mandated routes for promoting cryptocurrencies may face criminal punishment, including up to two years imprisonment.