FCA And Metropolitan Police Seize Unregistered Crypto ATMs In London Over Suspected Illegal Cryptoasset Exchange

United Kingdom Financial Conduct Authority (FCA) announced that, in collaboration with the Metropolitan Police Service, four locations in southwest London were searched as part of an ongoing operation. During the searches, seven cryptocurrency ATMs were discovered and subsequently seized. Two individuals were interviewed under caution and later released while further investigations are ongoing.

Therese Chambers, Executive Director of Enforcement and Market Oversight at the FCA, said that anyone operating a cryptocurrency ATM or exchange illegally should expect serious consequences. She stated that there are currently no legally operated cryptocurrency ATMs in the UK, and that using one contributes to criminal activity. She added that the FCA would continue working with law enforcement agencies to combat financial crime and protect consumers.

Operating a cryptoasset exchange or a cryptocurrency ATM in the UK without registration with the Financial Conduct Authority has been prohibited since 2021. Non-compliance with regulations related to money laundering is considered a criminal offence under UK law.

Global Expansion Of Crypto ATMs Drives Regulatory Focus And Infrastructure Growth

Cryptocurrency ATMs are kiosks designed to enable the purchase or sale of Bitcoin and, in many instances, other digital assets using either cash or debit cards. Unlike conventional bank ATMs that operate through a user’s bank account, these machines connect directly to cryptocurrency exchanges to process transactions. Users generally scan a wallet QR code, insert cash, and receive cryptocurrency in their digital wallet, or conversely, exchange cryptocurrency for cash.

The global presence of these machines has expanded, corresponding with the broader integration of digital currencies. Data from a Bitget report indicates that, as of January 1st, 2025, there were 38,768 Bitcoin ATMs operating worldwide. This figure represents a 6.02% increase compared to the previous year, with 2,217 additional units deployed in 2024 across diverse locations, including metropolitan areas, small towns, retail centers, and fuel stations.

By the close of 2024, approximately 81.27% of these machines were located in the United States, amounting to 31,505 units. In Europe, countries such as Spain, Poland, Germany, and Romania, along with territories like Hong Kong and El Salvador, contributed to the global total. For instance, Spain hosted around 313 units, Poland had between 219 and 279, and Germany reported roughly 177 machines. Europe collectively accounted for an estimated 4.3% of the worldwide market share.

The pace at which cryptocurrency ATMs have been deployed has prompted increased regulatory oversight. Operators adhering to regulatory frameworks tend to distinguish themselves by prioritizing security measures, regular auditing, and customer support. From an investment perspective, an operator’s compliance practices play an important role in determining exposure to operational and legal risks. Regions with well-defined and supportive regulatory environments generally experience higher rates of ATM deployment, whereas those with more restrictive frameworks often present barriers to operation and expansion.

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