Bitcoin ATMs forced to close in the UK

Bitcoin ATMs are a technical solution to the cryptocurrency’s fast expansion. The Financial Conduct Authority has advised cryptocurrency ATM operators in the United Kingdom to take down them. Otherwise, they may risk legal action. In this article, find out the reasons for that solution.

Bitcoin ATMs forced to close in the UK (by bit4you)

According to the BBC, the Financial Conduct Authority (FCA) of the United Kingdom ruled all cryptocurrency ATMs unlawful. The country’s financial authority stated that it had not allowed any of the registered cryptocurrency enterprises authorization to use the services of the particular ATMs. Also, operators may continue offering cryptocurrency services if they have secured licenses in the United Kingdom. However, it is not an easy deal since the operators have to set up activities in compliance with MLR standards.

Cryptocurrencies ATMs enable users to purchase bitcoin in exchange for cash. In most cases, we’re talking about bitcoins, however, certain terminals accept other prominent cryptocurrencies. Some crypto ATMs allow users to withdraw funds from their wallets in fiat currency as well as acquire cryptocurrencies. Also, crypto ATMs interface with the blockchain over the Internet and provide the user with the address to which the cryptocurrency is sent. It also includes the QR code to make transactions. This way cryptocurrency is transferred from one of the ATM’s owner’s wallets.

According to the British media, the regulator’s decision came following a court dispute against Gidiplus, the ATM network. After the FCA refused the company a license, its representatives decided to appeal the regulator’s decision to the court. However, the judge sided with the regulator. During the hearing, it became evident that Gidiplus did not acquire the license since insufficient client information was collected. ATMs did not demand personal information for deposits under £250, according to the FCA. So, this might have aided in money laundering.

The FCA advises the British that the cryptocurrency market is unregulated and there is a significant risk that customers will be unprotected if they lose money. The regulators also issued a list of operators that sell cryptocurrency but have not registered with the FCA or passed a money laundering test. Since then, 110 of the businesses on the list have ceased operations. According to the Coin ATM Radar tracker, there are around 81 operational bitcoin ATMs across the country, the majority of which are found in supermarkets and convenience stores. Previously, the FCA claimed that in the first six months of 2021, it processed 300 complaints involving unregistered cryptocurrency industry enterprises.

The bit4you trading platform, based in Belgium, offers services such as cryptocurrency selling, exchanging, and trading at European level. Each user has unrestricted access to more than 45 crypto assets, allowing him to test as many trading strategies as he wants. There, whether you are a beginner or an experienced crypto trader, you will discover the most convenient approach to explore the crypto world. Finally, we are happy to inform you that crypto staking is now available! As a result, you may trade or stake cryptocurrencies without concerns because there are no trading fees on the platform. Furthermore, bit4you enables you to invite a referral and receive a bonus, which you may share with a friend. Thus, trade and exchange with pleasure on bit4you!

Valentyna Bereza, Team bit4you.

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bit4you is an european crypto exchange platform. We are facilitating the transition between crypto currencies and traditional currencies such as euro.