The Financial Conduct Authority (FCA) has been cracking down on crypto ATMs in the U.K. with 18 sites inspected in May and June, bringing the total for the year to 34. The FCA has disrupted 26 machines operating unlawfully across the country.
Inspections were conducted in conjunction with the South West Regional Organized Crime Unit and the police forces of Greater London, Bedfordshire, and Hertfordshire. In one case, a member of the public paid 1,000 British pounds ($1,290) into a crypto ATM and, even though the machine said the transaction was unsuccessful, no funds were returned.
The FCA has warned the public that any crypto ATMs in the country are operating illegally and that consumers will not be protected if they use one and something goes wrong, such as them falling victim to a scam. None of the more than 40 registered crypto companies in the U.K. is licensed to offer ATM services and, therefore, any crypto ATMs operating in the U.K. are doing so illegally, the FCA has warned. There are 10 such locations in the country, according to data site Coin ATM Radar.