The UK’s Financial Conduct Authority has warned crypto ATM operators to either shut down the machines or face enforcement action. The agency is set to reject any crypto companies operating without meeting high AML standards in the United Kingdom. The deadline to meet the AML standards is the end of this month.
The crypto ATMs need to be registered with the FCA. The watchdog highlighted that none of the machines that had already registered had been approved to offer crypto ATM services. It also highlighted that ATMs operating in the UK were illegal, as such consumers should not be using them.
In an official statement, the FCA pointed out that the Upper Tribunal had recently ruled against Gidiplus. The firm operating crypto ATMs had refused to register its application under Money Laundering Regulations (MLRs). The Upper Tribunal said there was a lack of evidence as to how Gidiplus would undertake business in a broadly compliant manner.
The FCA, as such, outlined its concerns about the crypto ATMs operating in the United Kingdom. The agency will contact the operators and instruct them to shut down the machines or face legal action. The FCA has published a list of unregistered crypto firms that may be continuing to conduct business. After a recent assessment, the watchdog established that 110 companies are no longer operational.
Analysts believe that FCA’s harsh stance would result in the UK losing a sizeable chunk of the crypto market. The FCA may be doing its job but stringent requirements would push the crypto companies to crypto-friendly nations. And that means the UK will lose crypto revenue.