Things are getting much harder for crypto ATM operators in the United Kingdom. The FCA wants to shut down all of these machines on the grounds of operating illegally. Although enforcing this new decision will pose a few challenges, an intriguing decision.
The UK FCA Continues Its Crypto Quest
The Financial Conduct Authority in the United Kingdom has kept close tabs on cryptocurrencies for some time now. Moreover, the organization intends to curb its presence in the UK and ensure users cannot access it too easily. The recent order to shut down all crypto ATMs in the country is another example of meddling in matters where it might not be needed.
Even so, there is a point to be made by ensuring crypto ATM operators register with the FCA. Anyone can set up such an ATM – assuming they have a location – and operate as a money transmitter. That causes some friction, as becoming a money transmitter would require complying with various requirements and obtaining a specific license.
It is unclear if operators will shut down their operations over the coming weeks and months. Despite its presence in the fintech sector, crypto ATMs are not too popular in the United Kingdom. However, under 100 devices are online throughout the region, so it will not affect too many users and enthusiasts whatsoever. The decision by the FCA can create a precedent for other countries to follow moving forward.