The UK Financial Conduct Authority (FCA) has used its powers to enter and inspect several sites around Leeds suspected of hosting illegally operated crypto ATMs.

The regulator gathered evidence from several sites around the city as part of a joint operation with West Yorkshire Police’s Digital Intelligence and Investigation Unit.

Mark Steward, Executive Director of Enforcement and Market Oversight at the FCA, said:

‘Crypto businesses operating in the UK need to be registered with the FCA for anti-money laundering purposes. However, crypto products themselves are currently unregulated and high-risk, and you should be prepared to lose all your money if you invest in them.’

Crypto ATMs are machines which allow customers to buy or convert funds into cryptoassets. Cryptoasset exchange providers, which includes 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 regulator is working with multiple law enforcement partners, including local police forces, to disrupt and disable illegal Crypto ATMs.

The watchdog will review evidence gathered during these visits and consider further potential enforcement action.

The regulator has previously warned operators of crypto ATMs in the UK to shut their machines down or face enforcement action.