Two individuals have been arrested on suspicion of money laundering and running an illegal cryptoasset exchange.  

As part of an operation led by the Financial Conduct Authority and the Metropolitan Police, four premises in South West London were searched.

During the search, seven crypto ATMs were found and seized by the FCA. The two suspects were interviewed under caution and released under investigation while enquiries continue. 

There has been a growing problem of crypto ATMs (cash machines that enable crypto transactions) in some areas of the UK.

It is illegal to operate a cryptoasset exchange or a crypto ATM in the UK without FCA registration. Failure to comply with related money laundering regulations is also a criminal offence. 

Therese Chambers, executive director of enforcement and market oversight at the FCA, said: “If you’re operating a crypto ATM or exchange illegally, then you should expect serious consequences. There are currently no legally-operated crypto ATMs in the UK, so using one only supports crime. We will continue to partner with law enforcement agencies to fight financial crime and protect consumers.” 

Detective Inspector Geoff Donoghue, of the Met’s Cryptocurrency Team, said: “Our team is committed to working alongside our partners to address the growing threat of the misuse of cryptocurrencies. 

“As cryptocurrency usage evolves, so does our efforts to safeguard our communities. This operation with the FCA shows our determination to keep Londoners safe from financial criminals.” 

Since 10 January 2021, cryptoasset businesses providing certain cryptoasset services in the UK must be registered with the FCA under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs). 

The FCA has warned consumers that cryptoassets are unregulated and high-risk, which means people are very unlikely to have any protection if things go wrong. 

• The FCA publishes a list of businesses that it suspects are operating without our registration.