The UK’s financial regulator has turned off 26 crypto ATMs around the country in a joint operation with law enforcement agencies since the beginning of the year.
In total, the Financial Conduct Authority (FCA) has visited 34 places across the UK where illegal crypto ATMs are believed to be operating.
“If you use a crypto ATM in the UK, you are using a machine that is operating illegally and you may be handing your money over to criminals,” said Steve Smart, joint executive director of enforcement and market oversight at the FCA.
The FCA has conducted raids in locations including East London, Leeds, Exeter, Sheffield and Nottingham.
“It is also unlikely you will be able to contact the operator of the machine to resolve any problems you may have,” added Smart. “Often, we see no effective channels of communications for people to get in touch with the operator.”
It comes as part of a broader crackdown by the FCA on the UK’s crypto sector. The watchdog recently announced it’s introducing a “cooling-off period” to the crypto sector for first-time investors and plans to ban “refer a friend” bonuses.
However, the FCA has come under fire by the director of the cryptocurrency think tank Digital Economy Initiative, who said the watchdog is “basically chasing the crypto sector offshore”.