- The U.K.’s financial watchdog has declared that all non-registered crypto ATMs are to be immediately shut down to avoid undisclosed additional action.
- The United Kingdom’s central financial regulator, the Financial Conduct Authority (FCA), has issued a strong verdict relating to the presence of Bitcoin ATMs within the island country.
- The watchdog cited a lack of regulatory structure, the high risk of fluctuating assets, and Anti-Money Laundering Principles as the reasons for the enforcement.
The financial watchdog in the United Kingdom has declared that all non-registered cryptocurrency ATMs are to be immediately closed down to avoid undisclosed additional action.
The United Kingdom’s central financial regulator, the Financial Conduct Authority (FCA), has issued a strong verdict relating to the presence of Bitcoin ATMs within the island country.
The watchdog cited a lack of regulatory structure, as well as the high risk of fluctuating assets and the importance of upholding the principles established within the Money Laundering Regulations as the primary reasons for the enforcement.
The financial watchdog stated, “We are concerned about crypto ATM[s] operating in the UK, and will therefore be contacting the operators instructing that the machines be shut down or face further action.”
There are approximately 81 Bitcoin ATMs in the U.K., which are operated by eight companies, according to analytical data conducted by Coin ATM Radar. It is the opinion of the FCA that these companies have not filed for the appropriate documents, or attained licensing status to operate such services within the jurisdiction.
The precedent for this ruling was recently established on the 15th of November when the Bitcoin-centric cryptocurrency asset automated teller machine service, Gidiplus Limited, was handed a decision notice by the FCA which turned down their application as a “crypto asset exchange provider.” Gidiplus went on to unsuccessfully appeal the decision to overturn the ruling in the Upper Tribunal chamber on the 3rd of December. The FCA proceeded to conclude their assessment with the notion that the appellant’s case lacked the necessary evidence as to how Gidiplus would stay within the confines of compliance pending determination of its appeal.