UK authorities have arrested two individuals and seized several cryptocurrency ATMs as part of an ongoing investigation into an unregistered crypto exchange and suspected financial crimes.
The Financial Conduct Authority (FCA), in collaboration with the Metropolitan Police, searched four properties in southwest London, leading to the seizure of seven crypto ATMs. According to the FCA, both suspects were interviewed under caution and released pending further investigation. No charges have been filed yet.
Under UK law, operating a cryptoasset exchange or ATM without FCA registration is illegal. All crypto-related firms must adhere to anti-money laundering regulations, including verifying customers’ identities and conducting source-of-funds checks.
Therese Chambers, the FCA’s executive director of enforcement and market oversight, reiterated that there are no legally operating crypto ATMs in the UK. She warned that the use of unregistered machines “only supports crime” and that violators should expect severe consequences.
The FCA has consistently taken a tough stance on unauthorized crypto ATM operations. Since January 2021, all crypto businesses in the UK are required to register with the regulator. The agency also serves as the anti-money laundering supervisor for crypto firms and has issued multiple warnings to the public about the risks of using unregulated crypto machines.
This week’s arrests come on the heels of the UK’s first criminal conviction involving illegal crypto ATMs earlier this year. In that case, Olumide Osunkoya received a four-year prison sentence for operating a £2.5 million crypto ATM business through his company, GidiPlus. Osunkoya continued his operations despite being denied FCA registration and was convicted of forgery, use of false identity documents, and possession of criminal property. Investigators found that his ATMs bypassed standard financial safeguards and charged markups as high as 60%.
While crypto ATMs remain banned in the UK, other countries are taking varied regulatory approaches. In the United States, over 29,000 crypto ATMs are active, though oversight is tightening. States like Nebraska have introduced licensing requirements, transaction limits, and scam protection measures, while Spokane, Washington, has imposed a full ban.
New Zealand has already prohibited crypto ATMs entirely, and Australia recently implemented stricter rules, including cash transaction caps and mandatory scam warnings, in response to a surge in Bitcoin ATM-related fraud cases.
