The Financial Conduct Authority is wasting no time on cracking down on the cryptocurrency industry. The largest financial regulator of the country has proceeded to ban the cryptocurrency ATMs in the region. The FCA has allotted a time limit for the digital ATM operators to fold their operations before the government can sue them.
The current banning order has been issued in light of United Kingdom anti-money laundering laws. The MLRs or money laundering regulations are the baseline legislators that FCA is targeting to remove all Bitcoin ATMs and cashpoints. The notice first appeared on the official government website of FCA for the information of the public.
Bitcoin ATM Operators Must Apply for Registration
The biggest selling point for cryptocurrencies is their privacy and decentralized nature. However, the FCA is using legislative pressure to ensure that all Bitcoin ATM operators in the country apply for registration with the central government. Without acquiring a practice license from the government, these Bitcoin ATMs cannot operate anymore in the region legally.
One ATM operator Gidiplus recently filed an appeal at the Upper Tribunal of the United Kingdom for granting its freedom to keep operating. However, the appeal was recently rejected, and Upper Tribunal claimed that there was not enough evidence provided by Gidiplus on how it will ensure a complaint mechanism with the centralized government policies.
It is not the only UK that is banning and limiting the local cryptocurrency industry. EU Central Bank is also planning to crack down on any further development of digital currencies under its jurisdiction. The larger portion of the cryptocurrency users is increasing in only areas like African and Asian countries. Recent data from Coin ATM Rader claim that after the latest hammering of FCA, the 81 functional Bitcoin ATMs will immediately go out of order.
Furthermore, while it is not illegal for consumers to conduct transactions on these digital ATMs, the FCA has continued to issue warnings for the masses to keep them from using these services. A Bitcoin ATM allows the user to convert their cash into cryptocurrencies for deposits and withdrawals. The users can also transfer their reserves into their designated digital wallet account using digital ATMs.