City regulator joins Met in raids on suspected crypto ATM operations

The Metropolis watchdog and native police have raided a number of websites in east London suspected of housing unlawful ATMs distributing cryptocurrencies, as a part of a widening crackdown on the sector.

The joint operation between the Monetary Conduct Authority (FCA) and Metropolitan police got here simply weeks after related raids in Leeds. These are believed to be the primary to focus on crypto distribution within the UK, together with machines that permit prospects to purchase or convert conventional currencies into cryptoassets reminiscent of bitcoin.

The FCA mentioned it could overview proof it had collected throughout these operations and would “think about taking additional motion the place crucial”.

Whereas the FCA doesn’t regulate the sector, it does require all corporations dealing in crypto to register and show they’ve efficient anti-money laundering and terrorist financing controls. There are not any crypto ATMs registered with the FCA, which means any working within the UK are doing so illegally.

Mark Steward, the director accountable for enforcement and market oversight on the Metropolis regulator, mentioned the raids have been sending “a transparent message” that authorities have been persevering with to seek for and goal unregistered crypto companies throughout the UK.

“Crypto ATMs working with out FCA registration are unlawful and, as immediately exhibits, we’ll take motion to cease this,” Steward mentioned.

The FCA mentioned it was working with the Nationwide Financial Crime Centre to plan and coordinate with different regulation enforcement companions – following its work with the Met and West Yorkshire police – to search out and shut down unregistered crypto ATMs.

“Crypto merchandise are usually not at the moment regulated and they’re excessive threat. You have to be ready to lose all of your cash for those who spend money on them,” the regulator added.