The UK cracks down on illegal Crypto Assets ATMs! Equipment seized and personnel arrested, compliance operations for Crypto Assets become the focus.

The UK's Financial Conduct Authority (FCA) conducted a raid in London in conjunction with the police, seizing 7 illegally operated Crypto Assets ATMs and arresting 2 individuals. The FCA reiterated that operating a Crypto Assets exchange or ATM in the UK must be registered for Compliance, and currently, there are no legal Crypto Assets ATMs in the UK. This move highlights the tightening global regulation of Crypto Assets ATMs, and investors need to be wary of the risks associated with unregistered devices.

Details of the UK Crypto ATM Raid The UK's Financial Conduct Authority (FCA) issued a statement announcing a joint operation with the Metropolitan Police to crack down on suspected illegal operating crypto assets exchanges and financial crimes. Law enforcement officers conducted raids at four locations in southwest London, successfully seizing 7 crypto assets ATM devices. Two suspects involved were detained for questioning and have since been released, with the investigation ongoing and no formal charges yet filed.

Compliance requirements for operating Crypto Assets in the UK The FCA has made it clear that in the UK, operating an unregistered crypto assets exchange or providing cryptocurrency ATM services is illegal. All relevant companies must strictly comply with anti-money laundering regulations (AML), including conducting customer due diligence (KYC) and verifying the source of funds. FCA Executive Director Therese Chambers emphasized that there are currently no legally operating cryptocurrency ATMs in the UK, and using unregistered devices "will only fuel crime," warning that illegal operators will face serious consequences.

FCA's Ongoing Crackdown on Illegal Crypto ATMs Since January 2021, any crypto business operating in the UK must complete registration with the FCA. The FCA, as the anti-money laundering regulator for crypto service providers, continues to warn the public about the risks of using unregulated crypto devices. This action follows the UK's first criminal conviction involving illegal crypto ATMs earlier this year. At that time, Olumide Osunkoya was sentenced to 4 years in prison for operating an illegal crypto ATM network worth £2.5 million through his company GidiPlus. Osunkoya continued to operate after the FCA rejected his registration application and was convicted of using false identity documents, forgery, and possession of criminal property. Investigations also found that his devices circumvented basic financial security safeguards and charged markups of up to 60%.

Global Crypto Assets ATM Regulatory Trends Comparison Despite the fact that Crypto Assets ATMs are still banned in the UK, other countries have taken different regulatory paths:

• United States: Currently operating over 29,000 cryptocurrency ATMs, but regulatory scrutiny is increasing. States like Nebraska have implemented licensing rules, transaction limits, and mandatory fraud refunds; Spokane, Washington has directly banned crypto ATMs.
• New Zealand: Has fully banned Crypto Assets ATM.
• Australia: Recently (earlier this month), tightened regulations after multiple high-value fraud cases related to Bitcoin ATMs, introducing measures such as cash transaction limits and mandatory fraud warnings.

Conclusion: The recent actions by the UK's FCA serve as a wake-up call, highlighting the high-pressure stance of global regulatory agencies towards the illegal operation of Crypto Assets ATMs and the associated money laundering risks. For Crypto Assets users, choosing a Compliance registered exchange is crucial; staying away from unregistered Crypto ATMs is a key step in mitigating risks and protecting one's asset security. The compliance operation in the Crypto Assets field has become an irreversible trend.