Shutdown of cryptocurrency ATMs

 

Shutdown of cryptocurrency ATMs

After unattended warnings to halt operations, the UK Financial Conduct Authority (FCA) closed 26 digital currency ATMs to operate illegally.

FCA's action against ATM operators was a collaborative effort with local law enforcement agencies across the country, Reuters reported.

The Financial Conduct Authority (FCA)

notwithstanding its failure to seek registration with the regulator

noted that digital currency ATMs are a focal point for facilitating fraud.

The agency switched to work after an unnamed person deposited money into an ATM to buy digital currencies, but he was the victim of a complex fraud that robbed his money.

Steve Smart :

executive director at the FCA, noted that law enforcement agents may not be able to recover funds deposited in digital currency ATMs, and urged residents to avoid using them.

Smart said :

• If you use an encrypted ATM in the UK

• you use a device that works illegally

• and you may hand over your money to criminals.

"You will not be protected if something goes wrong, and you can lose your money."

In February :

FCA issued a joint cease

and-desist order for digital currency ATM operators

with West :

Yorkshire Police after searching sites suspected of containing ATMs.

The Financial Conduct Authority (FCA)

warned that operators did not have the basic licence to provide

ATM services to the general public, saying that "any breach of

regulations would lead to an investigation under money laundering regulations.

According to data from Coin ATM Radar, the affected ATMs appear to be located around the London, Nottingham and Manchester areas.

Several general advisory warnings referred to digital currency

ATMs as part of the fraudsters' guide.

Actors may impersonate tax :

or law enforcement authorities to trick unsuspecting victims into transferring large sums using ATMs in digital currencies, making it difficult to track the trajectory of funds.

"The FBI has seen an increase in fraudsters directing victims to use encrypted ATMs and digital QR codes to complete payment transactions," the 2021 FBI warning reads.

FCA reviews its regulatory muscles

In line with the quest to rid the local digital currency industry of bad actors

the FCA has increased its regulatory activities.

In a July 4 letter to digital asset operators :

the Financial Supervisory Authority announced a new regulatory system to promote digital currencies, standardizing them with existing financial promotion standards.

In its statement :

• the FCA indicated that failure to comply

• with the new advertising framework

• would lead to criminal liability with the possibility of imprisonment.

As more companies compete for operating licenses, the FCA continues to demand a high level of compliance through the application of virtual asset service providers.

Of the 90 applications received in the past 12 months, the FCA has approved only eight companies as the campaign against the wrong entities continues.