All crypto automated teller machines or ATMs that have been selling crypto mainly Bitcoin autonomously were ordered to shut down by the Financial Conduct Authority the financial regulator of the UK. UK regulators already warned that all cryptocurrency ATMs must be shut down or else further action will be taken.
Crypto ATMs are machines that let people buy cryptos similarly to any traditional cash machine; inserting a card of the bank and in return getting digital coins. You can also buy cryptocurrencies by visiting the Home page of crypto genius.
According to a report, there are not any cryptocurrency ATMs in the UK that are FCA registered. Thus those present in the UK are not legal as they are not allowed to offer ATM services. Consequently, it was pointed out by the regulator that those that are still operating there are illegally doing and no consumer should use them.
The UK has almost 80 cryptocurrency ATMs and over 36000 worldwide in 76 countries. Over 50 such machines are situated in London, followed by Birmingham having nine crypto ATMs. But soon no single cryptocurrency ATM will be present in the UK. The number has already reduced to 41.
Globally, the UK is among the top 10 countries worldwide by crypto ATM count following Romania which has 124. The US is the leader in the crypto ATM worldwide having more than 32000 active crypto ATMS operating today.
Why such a decision is taken by the UK regulators?
■ An individual who will be offering the money exchange for crypto needs to be registered with the regulators and also comply with the money laundering regulation of the UK.
■ None of these registered firms got approval to offer these cryptocurrency ATM services.
■ So those operating in the country are illegally doing it.
■ Consumers should never be using them.
■ The Financial Conduct Authority mentioned that they were concerned regarding any cryptocurrency ATM that is still operating and if it will try to contact any operators. So they asked them to shut down or witness further consequences.
■ FCA has a broader aim to find any unregistered firm that offers crypto service.
■ They published a huge business list that they believe has been carrying on with such activities.
■ They said that almost 110 of them are not operating anymore.
■ They even warned investors that they will face huge risks in purchasing cryptos.
■ Their constant warning to consumers about these digital assets being unregulated and of high risk is because they are aware of the fact that people will unlikely have protection if anything goes wrong.
■ Last year in January a list of five concerns for the consumers was issued by the FCA. It highlighted the five things that they must be familiar with when they deal with crypto such as price volatility, consumer protection, misleading marketing material, etc.
■ They warned that everyone must be well prepared to lose their money if they select to make cryptocurrency investments.
■ Such a warning was reiterated again in September last year by the CEO of the FCA, Nikil Rathi.
■ They also have concerns over some specific firms in the industry of cryptocurrency such as Binance, its largest crypto exchange.
■ Previously they told that they have a huge problem with the lack of a headquarters of Binance.
■ Last year in September they mentioned that the UK entity of Binance was incapable of being regulated after failing to offer basic data to the regulator.
What is the situation after the order from the FCA in the UK?
■ After the FCA published the unregistered cryptocurrency firms’ list that was conducting their business, it was found that almost 110 are not more operational.
■ Gidiplus, a company offering crypto ATM services or the cryptocurrency ATM provider was rejected to register its business after its application got rejected recently by the regulator.
■ So to continue their operations, they made an appeal to a court, the Upper Tribunal which is known to hear appeals in the country.
■ However it was ruled out by a judge who denied their appeal due to a lack of proper evidence explaining how the company would be undertaking their business in a compliant way.
■ With the onset of the Russia-Ukraine war, the Financial Conduct Authority of the UK wrote to every registered cryptocurrency asset firm and even those who were temporarily holding registration status to point out their application of sanction on different individuals and entities.
Conclusion
Usage of the Bitcoin ATMs is going through constant scrutiny in other parts of the world too. Even in Singapore, the Monetary Authority forces the operators to shut down the ATMs by releasing new guidelines for licensing.
