At the moment, all 81 Bitcoin ATMs across the UK are ordered to shut down. This is because the country’s financial supervisors have announced they’re illegal. The UK’s FCA stated that none of the companies that hold the crypto ATMs is registered with the agency, making the businesses illegal in the UK.
ATMs Must Comply With The Financial Conduct Authority Rules
Crypto ATMs are machines that allow users to exchange cryptocurrency to fiat and vice versa. However, they barely have any security checks. These ATMs collect no personal information from their users and are entirely private.
Since crypto ATMs don’t comply with the FCA rules and regulations, they must close operations or face enforcement actions.
The specific regulations involve anti-money laundering laws and registering with the agency. Unfortunately, not a single crypto ATM in the UK is compliant with the current law.
The main argument behind this move is that crypto ATMs that operate on blockchain technology aren’t in tune with the know-your-customer rules. Therefore, operators can’t comply.
There are a total of 81 crypto ATMs across the UK, out of which 51 are located in London. What’s more, only 33 crypto asset companies are registered with FCA, and the other 21 businesses are “temporarily registered” and not yet fit and proper to become fully registered. These are waiting for the final decision.