Security News > 2022 > March > Cryptocoin ATMs ruled illegal – “Shut down at once”, says regulator
Crypto ATMs offering cryptoasset exchange services in the UK must be registered with [the FCA] and comply with UK Money Laundering Regulations.
If you're buying or selling cryptocoins via an existing payment card account or mobile phone payment system, from an ATM in a shopping centre, you'd think that the operation would be at least as trackable as any transaction involving a non-cryptocurrency account, such as a big-money purchase in a department store or luxury brand shop.
We are concerned about crypto ATM machines operating in the UK and will therefore be contacting the operators instructing that the machines be shut down or face further action.
Whereas online cryptocoin exchanges can demand some sort of document-based signup process, such as requiring new purchasers to upload scans of personal identification first, it's hard to see how a cryptocoin ATM conveniently placed in a local shopping centre could usefully conduct much of a "Know your customer" process up front.
The cryptocoin ATM could snap a photo of you in front of the machine, of course, and no doubt does so for its own sake anyway, but rules are rules, and regulations are regulations, and whatever hoops a registered ATM operator in the UK needs to jump through to ensure they are licensed correctly.
According to the BBC, there were fewer than 100 cryptcoin ATMs operating in Britain last week anyway, but we're guessing that the number is zero now.