It hasn’t even been two months since Elliptic, a blockchain analytics company, published it report details predictions for this year’s crypto regulations. The company says that 2023 will see increased sanctions in the crypto space as global regulators tighten regulations on the industry.
The Elliptics report has since come under fire as regulators take various enforcement actions around the globe. For example, a recent report states that the Financial Conduct Authority (FCA) is taking action against crypto ATM operators that are not registered in the United Kingdom (UK).
FCA Issues Stop Orders For Illegal Crypto ATM Operators
According to the FCA report, the UK watchdog is investigating several sites in Leeds where they suspect illegal cryptocurrency ATM operations. The FCA, in collaboration with West Yorkshire Police’s Digital Intelligence and Investigations Unit, collected evidence from various locations across the city. According to observations, all crypto ATMs in the UK operate without a license.
In a statement, the FCA’s executive director of enforcement and market surveillance, Mark Steward, said the regulator will continue to pursue unregistered crypto businesses in the UK.
The executive stressed that all ATM operators, including crypto ATMs, must register with the FCA and comply with UK money laundering rules. He added that crypto products are “high-risk assholes” and “lack regulatory oversight.” So anyone who invests can face losses, according to government officials.
Deputy Sergeant Lindsey Brant from the Cyber Force Team at West Yorkshire Police also commented. According to Brant, recent investigations have allowed him to identify the location of several crypto ATMs directly. The officer also noted that the regulator issued a cease and desist order to the operator. The watchdog also warned that violating the regulations would attract investigations under money laundering rules.
Officer Brant noted that the Cyber Force Team is pleased with the partnership with the FCA in what it calls “the first crypto enforcement action in West Yorkshire.” UK authorities are working with many law enforcement agencies, including local police forces to disrupt and shut down unregistered crypto ATMs.
Also, the report revealed that FCA previously write for all crypto ATM operators and hosts, warning of the consequences of failing to register under the watchdog. The recent action by the FCA against cryptocurrency ATMs will affect many operators.
According to Coin ATM Radar, up to 28 locations offer these machines in the UK. The data shows that more than 50% of crypto ATM locations are in London, with Birmingham, Manchester, and Nottingham even closer.
Regulators Increase Oversight In The Crypto Industry
The latest enforcement action against crypto ATMs in the UK is not the first the FCA has taken. In March 2022, the supervisor issued a similar cease and desist ordered for Bitcoin ATMs. The FCA, in its order, has asked all unregistered ATMs to shut down immediately or face additional enforcement action.
The FCA’s recent enforcement action comes amid increased regulation of cryptocurrency by global financial watchdogs across the globe. Recently, several cryptocurrency companies have faced several enforcement actions from US regulators.
For example, in a recent report, the New York Department of Financial Services (NYDFS) ordered Paxos to stop minting and publishing BUSD after several investigations.
Also, Coinbase and Kraken faces enforcement actions of the NYDFS and the US Securities and Exchange Commission. In the report, the NYDFS followed crypto exchange Coinbase, accused that the company fails to comply with anti-money laundering and know-your-customer (KYC) standards. As a result, NY regulators demanded a $100 million fine from the crypto exchange.
Featured image from pexels, chart from TradingView.com