Earlier today, the UK Financial Conduct Authority (FCA) announced another enforcement action taken against crypto ATMs. This time, the FCA targeted unauthorized crypto ATMs operating in East London.
The FCA requires all crypto firms, including ATMs, to be registered and adherent to anti-money laundering rules. Currently, there are no authorized crypto ATMs operating.
Katharine Wooller, Business Unit Director at Coincover – a Digital Assets Protection firm, said the move was an encouraging step by the FCA, adding that the UK’s approach to regulation of digital assets has been “sluggish” and more proactive measures are needed.
“Trust in cryptocurrencies has collapsed once again following the FTX scandal. And if it’s not the collapse of trusted crypto brands, theft, hacking and fraud continue to drive consumer anxieties and scepticism of the entire market,” said Wooller. “The unfortunate reality is that digital assets remain vulnerable to abuse from a small pool of bad actors, which is why we need to introduce safeguards and proper governance standards. Without regulation, the market will continue to be a Wild West with abnormally high level of risk. But if implemented correctly, regulation can reduce those risks and protect investors.”
Wooller said that at the same time, regulation of digital assets will “ultimately provide cryptos with the trust and security needed for growth.”