Benzinga - The UK Financial Conduct Authority (FCA) conducted a series of intelligence-gathering operations with West Yorkshire Police's Digital Intelligence and Investigation Unit to uncover unregistered cryptocurrency ATMs operating illegally in the U.K.
These machines allow customers to purchase or convert funds into crypto assets.
Cryptocurrency ATM operators, like other crypto asset exchange providers, must be registered with the FCA and comply with the U.K. Money Laundering Regulations, a requirement that several crypto ATM operators in the UK have failed to meet, according to officials.
The FCA previously issued warning letters to all crypto ATM operators, stating the legal consequences of failing to register with the agency.
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The FCA will review the evidence obtained from these operations and consider potential enforcement action.
Mark Steward, executive director of enforcement and market oversight at the FCA, warned investing in high-risk and unregulated crypto products could result in losing all of one's investment.
Det. Sgt. Lindsey Brants of the Force Cyber Team at West Yorkshire Police hailed the operation as a national first in West Yorkshire and stated that any breach of regulations would result in an investigation under money-laundering regulations.
The FCA is collaborating with multiple law enforcement partners, including local police forces, to disrupt and disable illegal crypto ATMs.
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