UK financial conduct authority asks crypto service providers to shut down their ATMs or face enforcement action
The conduct regulator for financial services in the UK, the Financial Conduct Authority (FCA), announced that crypto firms operating illegally in the UK must shut down their ATMs. The FCA further said in an official notice published on its website on March 11 that the operators who continue to function despite the warning will face enforcement action.
The official notice further explained the new order as follows:
* Crypto ATMs that offer crypto asset exchange services in the UK must be registered with FCA and comply with the UK Money Laundering Regulations (MLR).
* None of the crypto asset firms that are registered with the FCA can offer crypto ATM services in the UK and if they are doing so, it would be considered illegal and consumers must not use them either.
* The FCA decided to take legal action against the crypto ATM operators in the country following the legal judgment taken by the Upper Tribunal against the crypto firm Gidiplus in February 2022.
– Gidiplus wanted the country’s Upper Tribunal to allow it to continue trading while it waits for the judgement of its appeal against the FCA’s decision to refuse its application for registration under the MLRs.
– The Tribunal decided that there wasn’t sufficient evidence to confirm if Gidiplus would conduct its business in a broadly compliant manner.
* Earlier the FCA had also published in June 2021, a list of 111 unregistered UK-based crypto that appear to be carrying on crypto asset activity that are not registered with the FCA for anti-money laundering purposes. These crypto firms are no longer functional.
The FCA announcement concluded that it regularly warns consumers that cryptoassets are unregulated and high-risk assets. FCA said in the notice that since crypto assets are risky, people are very unlikely to have any safeguards in case things go wrong, and they should be prepared to lose all their money if they choose to invest in them.
For the latest crypto news and investment tips, follow our Cryptocurrency page.
The official notice further explained the new order as follows:
* Crypto ATMs that offer crypto asset exchange services in the UK must be registered with FCA and comply with the UK Money Laundering Regulations (MLR).
* None of the crypto asset firms that are registered with the FCA can offer crypto ATM services in the UK and if they are doing so, it would be considered illegal and consumers must not use them either.
* The FCA decided to take legal action against the crypto ATM operators in the country following the legal judgment taken by the Upper Tribunal against the crypto firm Gidiplus in February 2022.
– Gidiplus wanted the country’s Upper Tribunal to allow it to continue trading while it waits for the judgement of its appeal against the FCA’s decision to refuse its application for registration under the MLRs.
– The Tribunal decided that there wasn’t sufficient evidence to confirm if Gidiplus would conduct its business in a broadly compliant manner.
* Earlier the FCA had also published in June 2021, a list of 111 unregistered UK-based crypto that appear to be carrying on crypto asset activity that are not registered with the FCA for anti-money laundering purposes. These crypto firms are no longer functional.
The FCA announcement concluded that it regularly warns consumers that cryptoassets are unregulated and high-risk assets. FCA said in the notice that since crypto assets are risky, people are very unlikely to have any safeguards in case things go wrong, and they should be prepared to lose all their money if they choose to invest in them.
For the latest crypto news and investment tips, follow our Cryptocurrency page.
