British authorities raid Bitcoin ATMs

West Yorkshire Police and the UK’s Financial Conduct Authority (FCA) conducted raids on several businesses in the Leeds area. It is believed that the companies illegally installed cryptocurrency ATMs, The Guardian reports.

These devices allow customers to convert traditional currencies into digital assets, including Bitcoin.

The FCA does not regulate cryptocurrencies, but requires industry firms to register and demonstrate effective controls against money laundering and the financing of terrorism (AML/FT).

The regulator does not register crypto ATMs, so any device installed on UK soil operates illegally. The agency will review the evidence gathered during the raids and determine further enforcement action, FCA officials stressed.

A spokesman for the cybercrime division said law enforcement has sent warnings to the operators of Bitcoin ATMs to cease using the devices. Otherwise, they may face charges for AML/FT violations.

The FCA noted that it is working with “several law enforcement partners” and continues to identify illegally deployed crypto ATMs.

“Cryptocurrency companies operating in the United Kingdom must be registered with the FCA to combat money laundering. However, crypto products themselves are currently not regulated and come with high risk. You should be prepared to lose all the money you invest in them,” said Mark Steward, the FCA’s Director of Enforcement and Market Oversight.

Earlier in the second half of 2022, the pace of bitcoin-ATM installations worldwide slowed by orders of magnitude.