Crypto ATMs Seized in the UK Amid Growing Scrutiny of Kiosk-Based Exchanges

Illegal Crypto ATMs Seized in London

Seven crypto ATMs were seized in southwest London, and two individuals were arrested by authorities on suspicion of money laundering and operating an illegal cryptocurrency exchange. The operation, which took place on Thursday, was a joint effort between the UK Financial Conduct Authority (FCA) and the Metropolitan Police. The FCA emphasized that since January 2021, any crypto business operating in the UK must be registered with the authority and adhere to anti-money laundering regulations. It is currently illegal to operate crypto ATMs without FCA registration in the UK.

Legislation Introduced in the US to Protect Against Crypto ATM Scams

In response to a wave of scams related to digital currencies and crypto kiosks in Wisconsin, state Senator Kelda Roys and state Representative Ryan Spaude introduced a bill aimed at creating safeguards against fraud, hidden fees, deceptive pricing, and scams that lead to financial losses. The bill seeks to provide accurate information about risks associated with technology, transparency regarding costs and fees, and legal protections against scams and criminal activities. Similar efforts have been made on a federal level in the US Senate with the introduction of the "The Crypto ATM Fraud Prevention Act" by Senator Dick Durbin.

According to reports by the FBI, victims lost approximately $247 million to scams involving crypto ATMs in 2023. The new bill in Wisconsin and the proposed federal legislation aim to protect consumers from falling victim to phishing scams and other fraudulent activities associated with crypto ATMs. If passed, these measures could provide warnings on kiosks, enforce transaction limits, and offer refunds to scam victims who report fraud within a certain timeframe.