An operation in London resulted in the arrest of two suspects for money laundering and operating an illegal cryptocurrency exchange using crypto ATMs.
Arrests and Enforcement Operations
Seven crypto ATMs were seized and two individuals were arrested in southwest London on Thursday on suspicion of money laundering and operating an illegal crypto exchange. The operation was conducted by the UK Financial Conduct Authority (FCA) and the Metropolitan Police. The suspects were interviewed and released under investigation while the inquiry continues.
Crypto ATM Regulations in the UK
Since January 2021, any crypto business operating in the UK must be registered with the FCA and comply with anti-money laundering regulations. Currently, no legal crypto ATMs are operating in the UK, and using or running one without FCA registration is a criminal offense. 'If you’re operating a crypto ATM or exchange illegally, then you should expect serious consequences,' stated Therese Chambers, the FCA's executive director.
Escalation of Cryptocurrency Scams in the US
In the US, lawmakers are proposing measures to prevent scams related to crypto ATMs following a wave of fraudulent schemes. For example, a bill was introduced in Wisconsin aiming to protect users from hidden fees and deceptive practices. If passed, the legislation will ensure transparency and consumer protection from financial losses.
Recent events highlight the need for strict oversight and regulation in the cryptocurrency sector to protect consumers from fraudulent activities and ensure the safe use of technologies.
