The FCA has teamed up with the police to take joint action at a number of sites around Leeds suspected of hosting illegally-operated crypto ATMs.

It is believed to be the first time the authorities have taken joint action again illegal crypto cash machines.

The FCA took part in a joint operation with West Yorkshire Police’s Digital Intelligence and Investigation Unit.  

Crypto ATMs are machines which allow customers to buy or convert funds into cryptoassets.

Cryptoasset exchange providers, which include crypto ATM operators, in the UK must be registered with the FCA and comply with the UK Money Laundering Regulations. This includes operators of crypto ATMs.

No crypto ATM operators currently have FCA registration.

The FCA previously wrote to all operators and hosts warning of the legal consequences of failing to register with the FCA.

The FCA says it is working local police forces to disrupt and disable illegal crypto ATMs. It will review evidence gathered during the visits and consider further potential enforcement action.

Mark Steward, executive director of enforcement and market oversight at the FCA, said: “Unregistered crypto ATMs operating in the UK are doing so illegally. We will continue to identify and disrupt unregistered crypto businesses operating in the UK.”   

Det Sgt Lindsey Brants of the Force Cyber Team at West Yorkshire Police, said: “Having conducted intelligence gathering work across West Yorkshire, we soon established the locations of several live crypto ATMs.”

“Warning letters were issued requesting the operators cease and desist using the machines and that any breach of regulations would result in an investigation under money-laundering regulations. We then shared our findings with the Financial Conduct Authority.

“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.”

It is expected that the FCA will regulate crypto assets in the near future.