Crypto asset firms are required to be registered with the FCA and comply with the UK Money Laundering Regulations (MLRs) if they want to operate crypto ATMs in the UK. However, according to the regulator, the crypto asset firms are operating illegally without registering to be approved to offer crypto ATM services.
Britain's Financial Conduct Authority (FCA) has now warned these operators of crypto ATMs in the UK to shut down their machines or face enforcement actions. Last month, the Upper Tribunal ruled against Gidiplus, a firm offering crypto ATM services that wanted to continue trading, after it appealed the FCA's decision to refuse its application to be registered as a crypto asset exchange provider under the MLRs. Judge Timothy Herrington concluded there was a 'lack
of evidence' as to how Gidiplus would undertake its business in a 'broadly compliant fashion.'
The FCA also alleged Gidiplus co-owner Olumide Osunkoya could not demonstrate that he had
'adequate knowledge, skills and experience in respect of Gidiplus's obligations under the MLRs'.
