Overview of Crypto ATMs in the UK 🇬🇧
If you are a crypto enthusiast in the UK, you might be surprised to learn that crypto ATMs have been relatively common despite being banned by the Financial Conduct Authority (FCA) in 2022. This year, there have been crackdowns on these ATMs, with the first criminal charge reported for operating one. Let’s dive into the details of the recent developments concerning crypto ATMs in the UK.
Crackdown on Illegal Crypto ATMs 🔒
Recent events have shed light on unlawful activities surrounding crypto ATMs in the UK. Here’s what you need to know:
- In March 2022, 81 operational crypto ATMs were present in the UK, making it among the top ten countries in the world with such machines at that time.
- Despite the ban by the FCA, crypto ATMs have continued to operate, leading to various police actions against their use.
- The first criminal charge related to operating a crypto ATM was reported after a raid on an electronics store in Chatham, Kent, where multiple ATMs were confiscated.
Legal Consequences for Operating Crypto ATMs ⚖️
The individual involved in operating the illegal crypto ATMs is facing legal repercussions, including:
- Habibur Rahman, residing in East Ham, London, was arrested and charged for operating a crypto ATM without proper registration from the FCA.
- Additionally, Kent police accused Rahman of laundering £300,000 of illicit funds by converting them into digital assets.
- Rahman is currently on bail, awaiting his court appearance scheduled for October 10.
Risks Associated with Crypto ATMs 💰
Matthew Long, Director of Payments and Digital Assets at the FCA, highlighted the following risks associated with unregistered crypto ATMs:
- No crypto ATMs are registered with the FCA, posing a significant threat to users who may unknowingly facilitate criminal activities through these machines.
- The global trend shows that crypto ATMs are often utilized for illicit purposes, with over $160 million in illegitimate transactions processed through cash-to-crypto services since 2019.
International Response to Illegal Crypto ATMs 🌍
While the UK has cracked down on crypto ATMs, other countries are also taking action against illicit activities involving these machines:
- Germany recently seized nearly €250,000 and shut down 13 cryptocurrency ATMs for operating without the required licenses.
- Despite regulatory challenges, the proliferation of crypto ATMs continues in countries like Australia, with a 1700% increase in the past two years, and New Zealand, witnessing a rise from zero to 157 ATMs in the last year.
Expansion of Crypto ATMs Worldwide 🌎
The growth of crypto ATM networks is evident globally, with statistics showing a significant presence in various regions:
- The US currently boasts 31,843 crypto ATMs, indicating a widespread adoption of these machines in the country.
- Australia has seen a substantial surge in crypto ATMs, while New Zealand has rapidly increased its ATM count, highlighting the expanding popularity of these services.
Hot Take 🔥
If you are considering using a crypto ATM, ensure that you are aware of the regulatory status and potential risks associated with such machines. Stay informed and exercise caution when engaging with crypto ATMs to safeguard your assets and comply with legal requirements.
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