City regulator joins Met in raids on suspected crypto ATM operations
The City watchdog and local police have raided several sites in east London suspected of housing illegal ATMs distributing cryptocurrencies, as part of a widening crackdown on the sector.
The joint operation between the Financial Conduct Authority (FCA) and Metropolitan police came just weeks after similar raids in Leeds. Those are believed to be the first to target crypto distribution in the UK, including machines that allow customers to buy or convert traditional currencies into cryptoassets such as bitcoin.
The FCA said it would review evidence it had collected during those operations and would “consider taking further action where necessary”.
While the FCA does not regulate the sector, it does require all firms dealing in crypto to register and prove they have effective anti-money laundering and terrorist financing controls. There are no crypto ATMs registered with the FCA, meaning any that are operating in the UK are doing so illegally.
Mark Steward, the director in charge of enforcement and market oversight at the City regulator, said the raids were sending “a clear message” that authorities were continuing to search for and target unregistered crypto businesses across the UK.
“Crypto ATMs operating without FCA registration are illegal and, as today shows, we will take action to stop this,” Steward said.
The FCA said it was working with the National Economic Crime Centre to plan and coordinate with other law enforcement partners – following its work with the Met and West Yorkshire police – to find and shut down unregistered crypto ATMs.
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