Since the beginning of this year, the FCA has closed 26 out of a total of 34 cryptocurrency ATMs that it visited and inspected.
Reportedly, operators of such cryptocurrency ATMs have been given an ultimatum by the FCA to comply with the established regulations or simply cease all illegal operations in the country.
After the deadline of this ultimatum has passed, the FCA has examined a total of 36 cryptocurrency ATMs to date, most of which have also been closed.
Steve Smart, Joint Executive Director of Enforcement and Market Oversight, made the following statement regarding the use of cryptocurrency ATMs:
“If you use a cryptocurrency ATM in the United Kingdom, you are most likely using a machine that operates illegally and potentially handing your money over to criminals.”
It is noteworthy that victims of such scams are currently not protected by the British government or the machine operators.
All crypto exchanges and ATMs must be officially registered with the FCA and comply with the UK Money Laundering Regulations, which are rules against money laundering.
On July 8th, the police released a report describing how a crypto scammer impersonated law enforcement and managed to steal $6,000 from an unsuspecting victim while threatening them with an arrest warrant.
Scammers seem to employ fear tactics and impersonate law enforcement to deceive unsuspecting individuals into transferring money via cryptocurrency ATMs. However, it is important to note that law enforcement agencies never contact individuals demanding payment over the phone or through cryptocurrencies.
