The Financial Conduct Authority (FCA) has warned cryptocurrency ATM operators in the UK to turn off their machines or face enforcement action.

Crypto ATMs in the UK are illegal

In its announcement, the financial regulator said that it had not given any registered crypto companies permission to operate ATM services.

That means all crypto ATMs in the UK are illegal.

“Crypto ATMs offering crypto asset exchange services in the UK must be registered with us and comply with the UK Money Laundering Regulations,” the regulator wrote.

As reported by The Telegraph, there are about 81 . cashier Crypto ATMs that work in the UK according to data from Coin ATM Radar, which are located mainly inside supermarkets and convenience stores.

These ATMs allow users to deposit cash in exchange for cryptocurrency, which they can then transfer to their digital wallets.

Concerns that ATMs are being used for money laundering

Regulators have previously raised concerns that the machines could be used for money laundering as they require minimal background checks, especially for small deposits.

Gidiplus, the operator of a Bitcoin ATM, is seeking to overturn FCA’s refusal to grant it a license. The regulator argued that bad actors could take advantage of its weak identity check engine on people who deposited less than £250.

Money launderers and illegal businesses have the potential to use multiple “donkeys” to carry out small transactions in order to avoid being noticed by the authorities.

Britain’s High Court ruled against Gidiplus, which has since sold its ATMs to Eastern European buyers.

The regulator ended its announcement with a warning that cryptocurrencies are high risk and people could lose their money if something goes wrong:

“We regularly warn consumers that crypto assets are unregulated and high risk, which means people are very unlikely to have protection in the event something goes wrong, so people should be prepared to lose all their money.” money if they decide to invest in it.