FCA and West Yorkshire police raid crypto operators in UK first

theguardian.com:

Authorities have raided several sites around Leeds as part of what is believed to be the UK’s first crackdown on illegally operated crypto ATMs.

Evidence was gathered from multiple sites around the city that were suspected to be hosting machines allowing customers to buy or convert traditional currencies into cryptoassets including bitcoin.

The raids follow a joint investigation between the Financial Conduct Authority and the West Yorkshire police force’s digital intelligence and investigation unit. “The FCA will review evidence gathered during these visits and consider further potential enforcement action,” the regulator said.

While the FCA does not regulate cryptoassets, it does require all firms dealing in crypto to register and prove they have effective anti-money laundering and terrorist financing controls.

There are no crypto ATMs registered with the FCA, meaning any crypto ATM operating in the UK is doing so illegally.

DS Lindsey Brants of the cyber team at West Yorkshire police said the force issued a warning letter to operators, telling them to stop using the ATMs or risk being investigated under the UK’s money laundering regulations. The force then shared its findings with the FCA.

“We are pleased to be able to work in partnership with the FCA in what we believe is a national first here in West Yorkshire,” Brants said.

The FCA said it was working with “multiple law enforcement partners”, including other local police forces as it continues to investigate other sites that may be hosting illegal crypto ATMs.

“We will continue to identify and disrupt unregistered crypto businesses operating in the UK,” Mark Steward, the FCA’s director in charge of enforcement and market oversight, said.

Sign up to Business Today

Get set for