The FCA, Financial Conduct Authority, in collaboration with local police has raided suspected cryptocurrency ATMs and distribution points in East London. This comes in the wake of a similar raid in the city of Leeds several weeks ago as the FCA maintains that with the absence of any such ATMs and distribution points registered with it, anyone carrying out such operations does not have any legal permit which makes their operations in the UK illegal.
This raid was a joint operation involving the FCA and Metropolitan Police This raids are however not a new occurrence to the rest of the world as authorities elsewhere are expanding their crackdown on the sector with the aim of rooting out unscrupulous dealers. The raid in Leeds and the one in London are among the first in the UK and this could be an indication of more stringent regulations in the future. The sector has enjoyed autonomy in the UK because there is no specific regulator for its activities but this is about to change as the authorities begin to take notice of their operations.
The authorities are targeting machines and terminals that make it possible for citizens of the country to convert their fiat currencies to crypto assets such as bitcoin among others.
Further reports from the FCA indicate that they are currently analyzing the information they collected from the raids and will consider taking affirmative action where it decides necessary. The agency also gave a stern warning to investors that investing in such products is a very high risk undertaking and that they should be ready to lose all their money should they choose to ignore the warning.
The FCA requires all providers and companies conducting any operations in crypto within the UK to register with it. It also requires all the applicants to give proof that they are not affiliated to any money laundering schemes or financing of terrorist activities.
According to data from the FCA, there are no crypto ATMs or distribution terminals registered under it making any operations of the kiosks within the UK illegal.
One of the directors at the regulator hinted that authorities will continue the crackdown on illegal establishments in the sector. He also noted that the FCA is working with other agencies including the National Economic Crime Center to coordinate a uniform response to enforcement of law in the sector. The regulator terms the sector uncertain since there is no specific regulator for it.
Author’s sentiments
The crypto market in the UK is among the fastest growing in Europe but such raids from the government makes it difficult for potential entrants to hold back due to skepticism. However, data indicates that the sector is not going away any time soon, instead it is gearing up to be dominant in the future since its applications are vast and it brings with it transparency and speed that will ensure seamless transactions and integrations with other industries in the world economy. How far that goes however is up to the authorities. Do you agree whether governments should have a say and regulate the crypto market? Leave your answer in the comment section.
