While Bitcoin ATMs aren't technically illegal in Britain, they need to be registered with the Financial Conduct Authority. Here's the problem: none of them are.
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The U.K. is ramping up its clampdown on Bitcoin ATMs — and has investigated several locations in London that were suspected of hosting these machines illegally.
While Bitcoin ATMs aren't technically illegal in Britain, they need to be registered with the Financial Conduct Authority and comply with anti-money laundering regulations.
And given how no crypto ATM operators have registered with the FCA to date, this means any outlet in existence would be breaking the law.
London's Metropolitan Police were involved in the operation to search the sites, which were found in the east of the capital.
And this isn't the first time that action has been taken against illegal Bitcoin ATMs, with a similar operation taking place in Leeds — the North of England — just last month.
The FCA's executive director of enforcement and market oversight, Mark Steward, said the agency was determined to take action — and vowed "to continue to identify and disrupt unregistered crypto businesses in the U.K." He added:
"Crypto products are not currently regulated and they are high risk. You should be prepared to lose all your money if you invest in them."
The FCA has been driven by fears that consumers have very little protection if things go wrong — and these machines could be used to launder criminal proceeds or even finance terrorism.
And it has teeth — regularly naming and shaming businesses that are operating without authorization on its website.
The U.K. hasn't been alone in clamping down on Bitcoin ATMs, with Singapore also outlawing these terminals amid fears that could be tantamount to advertising.
Guidelines unveiled in the city-state back in January 2022 appeared to take local operators by surprise.
In many cases, using a Bitcoin ATM can incur much higher transaction fees than using a centralized exchange on the internet anyway.
Data from CoinATMRadar.com shows that there are 37,408 of these terminals currently active across 80 countries — with the vast majority of them based in the U.S.
Walmart tentatively dipped its toe into this space back in 2021 by installing 200 Bitcoin ATMs in its stores through a partnership with Coinstar.
Interest in cryptocurrencies has plummeted as a direct result of the bear market, not to mention a number of devastating, high-profile bankruptcies among lenders.
