The UK FCA required the immediate closure of all crypto ATMs in the area.
The UK Financial Conduct Authority (FCA) required all cryptocurrency ATM operators in the nation to immediately stop activities with their ATM equipment for consumers if they wish to circumvent possible legal actions against them. The entity highlighted that ATMs must set up registration with the FCA, and none complies with this rule.
This order is a subject of concern for all Bitcoin and other crypto ATMs in the UK. These ATMs got labeled as illicit machines under the UK Money Laundering Regulations (MLR) and the absence of official FCA approval. The financial regulator revealed the information on its website on March 11.
The entity explained that Crypto ATMs serving as crypto-asset services providers in the UK must register and follow the UK Money Laundering Regulations (MLR). None of these crypto businesses complied with this rule, so they no longer can provide crypto ATM services.
The entity showed concern about crypto ATMs operating in the UK and will locate operators to direct machines to get turned off or face further action.
A Particular Case that Led the UK High Court to Make a Decision
The UK High Court recently moved and decided to reject crypto ATM operator Gidiplus’s appeal to keep going with its operational functions, citing an absence of evidence on how GIdiplus would behave to run its business in a more compliant way. On the other hand, the court discusses the operator’s appeal against the FCA because it avoided applying to get their equipment registered.
The FCA highlighted that since they revealed the crypto companies that refused to comply with their registration that may have allowed them to keep running their business, a recent report also revealed that at least 110 are not operating.
81 Active ATMs
According to the information given by Coin ATM Radar, there were at least 81 active ATMs in the UK to date, primarily based in supermarkets and other goods stores. These same establishments have also faced warnings to cease the activities of their devices.
According to that page, there are at least 36,352 ATMs worldwide, with a growth of 36 ATMs daily. More than 32,000 active crypto ATMs carry out their activities in the United States of America.
This new legislation has not been the only procedure regarding digital assets that the FCA has made lately. This month, the FCA reported an investigation applied to at least 50 digital currencies companies and managed to review more than 300 cases linked to crypto.
Likewise, in January, the United Kingdom reported that it would further strengthen its policy on digital assets advertising, primarily to avoid misleading promotions and protect consumers from false encouragements regarding investments and cryptocurrencies in general.
By: Jenson Nuñez.
