UK authorities have recently seized seven crypto ATMs and arrested two individuals in southwest London in connection with an investigation into an unregistered cryptocurrency exchange suspected of money laundering and other financial crimes.
The operation was a coordinated effort between the Financial Conduct Authority (FCA) and the Metropolitan Police, reflecting the UK’s strict stance against illegal cryptoasset operations.
The seven crypto ATMs were found across four premises searched in southwest London and were promptly seized by the FCA.
The two suspects were arrested on suspicion of money laundering and running an illegal cryptoasset exchange but were later released under investigation as inquiries continue.
The FCA emphasized that there are currently no legally operated crypto ATMs in the UK, making it illegal to run crypto ATMs or exchanges without FCA registration, which includes compliance with anti-money laundering (AML) regulations such as customer due diligence and source-of-funds checks.
Therese Chambers, FCA’s Executive Director of Enforcement and Market Oversight, warned that operators of unregistered crypto machines should expect serious consequences and highlighted that unregulated crypto ATMs only support criminal activities.
This crackdown follows previous enforcement actions, including a 2023 case in which an operator was sentenced to four years for running an illegal crypto ATM network with forged documents etc.
Detective Inspector Geoff Donoghue from the Metropolitan Police’s Cryptocurrency Team noted the ongoing threat posed by misuse of cryptocurrencies and reinforced their commitment to protecting communities from financial criminals.
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