UK Authorities Clamp Down on Illegal Crypto ATMs

West Yorkshire Police and the UK's Financial Conduct Authority (FCA) searched several businesses in the Leeds area. The companies were allegedly illegally installing cryptocurrency ATMs, The Guardian reported.

The devices allow customers to convert traditional currencies into digital assets, including bitcoin.

The FCA does not regulate cryptocurrencies, but requires industry companies to register and certify effective anti-money laundering and counter terrorist financing (AML/FT) controls.

The regulator does not register cryptocurrencies, hence any device installed in the country is illegal. The agency will review evidence gathered during the raids and determine further enforcement action, the FCA stressed.

A spokesman for the cyber division of the police said that law enforcement officials have sent warnings to bitcoin-ATM operators to stop using the devices. Otherwise, they could face charges for violating AML/FT rules.

The FCA said it is working "with several law enforcement partners" and continues to identify illegally deployed cryptocurrency ATMs.