U.K. authorities have cracked down on an illegal cryptocurrency ATM network, arresting two individuals and seizing seven machines in an ongoing investigation into an unregistered cryptoasset exchange and suspected financial crime.
According to a statement by the U.K. Financial Conduct Authority (FCA), the enforcement operation was carried out in collaboration with the Metropolitan Police, who searched four properties across southwest London. The suspects were interviewed under caution and have since been released while the investigation continues. No formal charges have been filed yet.
The FCA reiterated that operating a cryptoasset exchange or crypto ATM in the U.K. without FCA registration is illegal. Under the country’s strict anti-money laundering regulations, crypto firms must conduct due diligence checks, monitor transactions, and report suspicious activity.
Criminal cases and global Crypto ATM policies
Therese Chambers, the FCA’s Executive Director of Enforcement and Market Oversight, emphasized the agency’s zero-tolerance approach. “There are currently no FCA-registered crypto ATMs in the U.K. The use of unregistered machines only supports crime,” she stated, warning that operators can expect serious consequences.
This week’s arrests come months after England’s first criminal sentencing involving illegal crypto ATMs. In that case, Olumide Osunkoya received a four-year prison sentence for operating a £2.5 million unlicensed ATM network under his company, GidiPlus. Osunkoya had previously been denied FCA registration but continued operations, relying on forged IDs and bypassing regulatory safeguards while charging markups of up to 60%.
While the U.K. maintains a strict ban on crypto ATMs, other countries are approaching the issue differently. The U.S. currently has over 29,000 operational crypto ATMs, but states like Nebraska and Washington have begun implementing tighter rules, including licensing mandates and outright bans. Meanwhile, New Zealand has banned crypto ATMs altogether, and Australia introduced stricter regulations this month, such as per-transaction cash limits and mandatory scam warnings. The FCA continues to urge the public to avoid unregulated crypto services and report suspicious activity.