Authorities in London, specifically the Financial Conduct Authority (FCA) working with the Metropolitan Police, have confiscated seven cryptocurrency ATMs and apprehended two individuals in the southwest part of the city.
A release from the FCA indicates that the pair were taken into custody and questioned regarding suspected involvement in money laundering activities and the operation of a crypto exchange without proper authorization. They have since been released as the investigation continues.
Since early 2021, laws in the UK have mandated that all businesses dealing with cryptocurrency must register with the FCA and adhere to regulations designed to combat money laundering.
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Therese Chambers, the FCA’s enforcement director, stated that anyone “operating a crypto ATM or exchange illegally” should anticipate “serious consequences.” She further emphasized that there are “no legally-operated crypto ATMs in the UK at present”, and therefore, utilizing them inadvertently “supports crime.”
Across the Atlantic, in the United States, legislators in the state of Wisconsin have put forward legislation aimed at mitigating fraud and deceptive practices associated with crypto ATMs. Senator Kelda Roys and Representative Ryan Spaude introduced the bill following a noted increase in fraudulent activities involving these machines.
The proposed law would oblige operators of these kiosks to prominently display all associated fees, provide precise exchange rate information, and prominently feature warnings regarding prevalent scams.
For the Wisconsin bill to be enacted, it must first be reviewed and approved by a relevant committee, subsequently pass votes in both houses of the state legislature, and finally, be signed into law by the governor.
In related news, the Michigan municipality of Grosse Pointe Farms has recently established regulations for crypto ATM operations, despite not currently having any within its borders. To discover what these regulations entail, access the full story here.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
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