Financial Conduct Authority, a U.K. watchdog has informed crypto ATMs that they were operating illegally in the country and should be closed down. FCA stated that any operator who fails to follow the FCA’s warning will be subject to enforcement actions.
Ilegal Crypto ATM providers
The U.K. financial sector watchdog, the Financial Conduct Authority (FCA), has said it asked cryptoasset service providers that operate crypto ATMs to “shut their machines down or face enforcement action.” The watchdog insisted that since none of the crypto firms that it has registered is approved to operate a crypto ATM, any one of these companies that operates one in the U.K. is doing so illegally.
The FCA stated that it was following a U.K. court ruling against Gidiplus, one of crypto ATM operator’s, that they decided to pursue the 81 operators.
According to the statement, Gidiplus wanted the country’s Upper Tribunal to allow it to continue trading while it waits for the determination of its appeal — an appeal against the FCA’s decision to refuse its application for registration under the Money Laundering Regulations (MLR). However, the judge hearing the case reportedly determined that there was “a lack of evidence as to how Gidiplus would undertake its business in a broadly compliant fashion.”
In the interim, The FCA stated that 110 of those crypto companies that had been on its unregistered list were no longer operating. In closing, the FCA warns consumers about potential risks associated with trading in cryptocurrencies. This is the official statement.
Our regular warnings to consumers about cryptoassets being unregulated and high risk means that they may not be covered if something goes wrong. We advise people to expect losses if they decide to make an investment in these assets.
FCA’s Stance on the Use of Crypto to Evade Sanctions
Meanwhile, in a different statement, the FCA clarified that the country’s financial sanctions regulations “do not differentiate between cryptoassets and other forms of assets.” The watchdog added that any “use of cryptoassets to circumvent economic sanctions” is therefore determined to be a criminal offense under the Money Laundering Regulations 2017, and regulations made under the Sanctions and Anti-Money Laundering Act of 2018.
The FCA’s warning comes as concerns are voiced that sanctioned Russian entities will attempt to use cryptoassets to evade sanctions. Nevertheless, the watchdog said in the statement that it “has already written to all registered cryptoasset firms and those holding temporary registration status to highlight the application of sanctions on various entities and individuals.”
Let us know your opinions on the story. Let us know what you think by leaving comments below.
Credit to ImageShutterstock. Pixabay. Wiki Commons
DisclaimerThis information is provided for educational purposes only. It does not constitute an offer, solicitation, or recommendation of any company, products or services. Bitcoin.com doesn’t offer investment, tax or legal advice. The author and the company are not responsible for any loss or damage caused or alleged caused by the content or use of any goods, services, or information mentioned in the article.