Illegal Cryptoasset Exchange Busted: Seven Crypto ATMs Seized & Two Arrested in London

In a significant crackdown on illicit crypto activity, two individuals have been arrested on suspicion of money laundering and operating an unauthorised cryptoasset exchange. The arrests followed a joint operation between the Financial Conduct Authority (FCA) and the Metropolitan Police Service, during which four premises across southwest London were searched.

The FCA also seized seven crypto ATMs from the targeted locations. Crypto ATMs allow customers to buy or sell cryptoassets using cash but must be registered with the FCA to operate legally in the UK. The FCA has made it clear that no crypto ATMs currently operate lawfully in the UK, highlighting the inherent risks consumers face when using these machines.

Therese Chambers, Executive Director of Enforcement and Market Oversight at the FCA, reinforced this message, stating:

If you’re operating a crypto ATM or exchange illegally, then you should expect serious consequences. There are currently no legally-operated crypto ATMs in the UK, so using one only supports crime. We will continue to partner with law enforcement agencies to fight financial crime and protect consumers.

Detective Inspector Geoff Donoghue of the Met’s Cryptocurrency Team added:

Our team is committed to working alongside our partners to address the growing threat of the misuse of cryptocurrencies. As cryptocurrency usage evolves, so does our efforts to safeguard our communities. This operation with the FCA shows our determination to keep Londoners safe from financial criminals.

Operating a cryptoasset exchange or crypto ATM in the UK without FCA registration is a criminal offence. In addition, failure to comply with anti-money laundering regulations exposes individuals and businesses to prosecution and penalties.

The two suspects arrested during the operation were interviewed under caution and have been released under investigation while enquiries continue.

This case underscores the FCA’s robust stance against illegal crypto operations and its commitment to protecting consumers and the integrity of the UK’s financial system. With crypto-related crime increasingly in the spotlight, regulatory enforcement in this sector is likely to intensify, sending a clear message to anyone considering unlicensed activity.

Read the press release here.