FCA Orders Crypto ATMs to Shut Down

The United Kingdom’s Financial Conduct Authority (FCA) has deemed that all crypto ATMs in the country are operating illegally and must be shut down, the financial regulator said in a press release on 11 March.

According to the announcement, operators of crypto ATMs within the country need to be registered with the FCA to offer their services and comply with the anti-money laundering regulations. The financial regulator, however, has concluded that none of the crypto ATM operators had registered to offer such services, and has now issued a “shut down or face further action” order. The FCA said:

“We are concerned about crypto ATM machines operating in the UK and will therefore be contacting the operators instructing that the machines be shut down or face further action.”

The regulator stated that the primary reasons for the order were the lack of regulatory structure for ATMs, potential high-risk of fluctuating assets, and the importance of upholding the established anti-money laundering regulations in the country. The FCA also made a reference to Gidiplus, a crypto ATM service provider, which had its registration application rejected by the regulator. The firm later took its case to court in order to appeal this decision, but was dismissed by the judge as it had a “lack of evidence as to how Gidiplus would undertake its business in a broadly compliant fashion”.

The FCA has so far granted registration approvals to 33 crypto companies — amongst which are Gemini, Kraken, Galaxy Digital, eToro, and others — and a temporary registration status to 22 others. It has now stated that none of these companies have filed the appropriate documents to operate crypto ATM services in the country. According to data from Coin ATM Radar, there are currently 81 Bitcoin ATMs within the United Kingdoms, which are operated by eight companies.