Bitcoin ATMs in the United Kingdom are now being ordered to shut down. The Financial Conduct Authority gave the order saying the Bitcoin ATMs should "shut down or face punishment."
81 Bitcoin ATMs to Shut Down in the U.K.
According to the story by Yahoo News, there are currently eight providers controlling 81 different Bitcoin ATMs operating in the U.K. The reason is none of them are actually licensed by the FCA themselves.
The website CoinATMRadar tracks where different Bitcoin ATMs are operating around the world. When scanning through the website and looking for the Bitcoin ATMs in the U.K., Yahoo News notes that most of them can actually be found inside convenience stores and supermarkets.
FCA UK Watchdog on Why They Have a Problem with Bitcoin ATMs
The FCA announced that it still had some concerns when it came to how the machines conduct "background checks," especially when it comes to "smaller deposit amounts." In addition, Bitcoin ATMs actually hold the appeal of circumventing the KYC or Know Your Customer process altogether, allowing them to purchase Bitcoin without having to give up their identification.
The FCA announced that they have issued a warning to crypto ATM operators in the U.K. to "shut their machines down or face enforcement actions." To add, in the U.K., crypto ATMs that are offering these types of cryptoasset exchange services are required to register with the FCA and also comply with the money laundering regulations of the U.K.
FCA Expressed Concerns with Bitcoin ATMs in the U.K.
The FCA said that the cryptoasset firms that have been registered with them had not gotten approval when it comes to offering crypto ATM services. It was explained that this meant that they were operating illegally in the U.K. and that consumers "should not be using them."
The FCA expressed their concerns when it came to ATM machines located in the U.K. Thus, they need to contact the operators directly. The FCA says that they will be instructing the operators that they will have to either shut down the Bitcoin ATMs or face further action.
There are 34,000 Crypto ATMs Around the World
Unlike the usual ATMs, where people can easily withdraw money from their personal bank accounts, Bitcoin ATMs function more as vendors, allowing customers to either buy or exchange different cryptocurrencies through cash.
Individuals are using the Bitcoin ATMs to deposit cash, buy crypto, and send the purchased crypto to a Bitcoin wallet of their choosing. As of the moment, there are already almost 34,000 crypto ATMs available around the world.
Out of the 34,000 crypto ATMs, most of them are said to be available in the U.S. In the U.K., the majority of Bitcoin ATM installations, as per CoinATMRadar, are located in London.
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This article is owned by Tech Times
Written by Urian B.
