The UK has taken a new step for Bitcoin ATMs. He closed Bitcoin ATMs with the announcement he sent to crypto money operators.
One of the easiest ways to buy Bitcoin today can be to use a Bitcoin ATM; All you have to do is deposit cash and send Bitcoin to your digital wallet. However, the UK Financial Conduct Authority (FCA) said in its latest announcement that all cryptocurrency machines, including Bitcoin ATMs, will be shut down.
Crypto ATMs are expected to be registered with the FCA to operate in the UK and comply with the UK Money Laundering Regulations (MLR). According to the FCA, none of the registered crypto-asset companies have been allowed to open ATMs, so those operating are illegal.
UK takes action to shut down Bitcoin ATMs
The latest statement from the FCA addresses all Bitcoin and other cryptocurrency ATMs in the UK as they have been declared illegal under the UK Money Laundering Regulations (MLR) and have not been approved by the FCA.
The UK's financial watchdog posted the announcement on its website, saying:
“Crypto ATMs offering crypto asset exchange services in the UK must be registered and comply with the UK Money Laundering Regulations (MLR). None of the crypto-asset companies registered with us have been approved to offer crypto ATM services, which means that anyone operating in the UK is operating an ATM illegally and consumers should not use it.”
Also per the announcement, the UK Supreme Court has recently decided to reject the appeal filed by crypto ATM operator Gidiplus to continue trading. The court cited the lack of evidence on how Gidiplus would control the crypto.
There are 81 cryptocurrency ATMs in the UK, mostly in supermarkets. “We are concerned about crypto ATM machines operating in the UK and will therefore be contacting operators who have instructed the machines to be shut down or further action taken,” the FCA said.
It should also be noted that the UK does not prohibit buying crypto. Investors looking to buy cryptocurrencies are still free to use online exchanges. However, investors in the UK are required to have KYC (authentication) to avoid being a victim of money laundering.
Crypto ATMs allow users to deposit cash in exchange for the required cryptocurrency, which can then be transferred to other online crypto wallets. But the FCA warns consumers against these high-risk digital assets, saying there will be a lack of legal and financial protection "if things go wrong".
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