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UK Seizes 7 Crypto ATMs; Two Arrested for Illegal Operations

Crypto ATM Seizures in London Spark Global Push for Regulation Amid Rising Fraud and Scams

  • Seven crypto ATMs were seized in southwest London for alleged illegal operations and money laundering.
  • Authorities in the UK stated all crypto ATMs must be registered and there are currently no legal ones in operation.
  • Two suspects were arrested and released under investigation, according to the Financial Conduct Authority (FCA).
  • U.S. lawmakers in Wisconsin have introduced a bill to regulate crypto ATMs and reduce fraud and hidden fees.
  • Phishing scams targeting vulnerable groups remain common, with crypto ATM-related losses totaling $247 million in the U.S. during 2023.

Authorities in southwest London seized seven cryptocurrency ATMs on Thursday and arrested two individuals suspected of money laundering and running an unregistered crypto exchange. The action was led by the UK Financial Conduct Authority (FCA) and the Metropolitan Police.

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The FCA stated that since January 2021, all crypto businesses in the UK must register with the regulator and comply with anti-money laundering rules. There are currently no legal crypto ATMs operating in the UK, and using or operating one without registration is considered a criminal offense. “If you’re operating a crypto ATM or exchange illegally, then you should expect serious consequences,” said Therese Chambers, executive director of enforcement and market oversight at the FCA. “There are currently no legally-operated crypto ATMs in the UK, so using one only supports crime.”

The two suspects involved were interviewed and released under investigation, with inquiries ongoing. Recent findings in Tasmania also indicate many victims using crypto ATMs have fallen for scams.

In the United States, a new bill in Wisconsin aims to regulate crypto kiosks following a rise in digital currency scams. State Senator Kelda Roys and State Representative Ryan Spaude introduced legislation to establish safeguards against fraud, hidden fees, and deceptive practices after scams surged in the state. According to Roys, “Everyone deserves accurate information about the risks of certain types of technology, transparency about the costs and fees, and legal guardrails to prevent scams and criminal exploitation.”

Phishing scams, where fraudsters trick people into sending cryptocurrency while pretending to be officials, remain the most common type of scam. Older and vulnerable people are often targeted. According to the FBI, victims in the U.S. lost about $247 million to crypto ATM scams in 2023, as reported in this FBI report.

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A similar bill called “The Crypto ATM Fraud Prevention Act” was introduced in the U.S. Senate. If enacted, it would enforce warnings, limit new customer transactions, and refund scam victims who report fraud within 30 days.

According to CoinATMradar, 78.4% of the world’s Bitcoin ATMs are located in the United States.

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