The closing order has been issued by the Financial Conduct Authority. In total, there were 81 cryptocurrency ATMs that had to comply with the order.
The UK’s Financial Conduct Authority (FCA) has ordered the immediate closure of 81 Bitcoin ATMs that were operating across the territory, for being illegal. This action was announced through a statement and the organization warns those responsible for implementing it that if they do not stop their operation they will face legal action.
“We have warned UK crypto ATM operators to shut down their machines or face legal action. Crypto ATMs offering UK crypto-asset exchange services must be registered with us and comply with UK money laundering regulations (MLR). None of the crypto companies registered with us are approved to provide crypto ATM services, which means that any operating in the UK are doing so illegally and consumers should not use it.” Financial Conduct Authority (FCA).
The financial regulator explains in the document that “the Supreme Court recently ruled against Gidiplus, a company that provides crypto ATM services, that it wished to continue trading … and the judge concluded that there was a “lack of evidence on how Gidiplus would run its business in a consistent manner on a large scale.” wide.
Only 13% of businesses in the country have received payments in bitcoin, according to a study by Camarasal
“We are concerned about crypto ATMs operating in the UK and will therefore be communicating with operators to direct which machines will be shut down or face further action,” the FCA warns.
As detailed by the UK financial regulator who recently published a list of unregistered crypto firms that may have continued to do business, a recent assessment found that 110 are no longer in business.
The Financial Conduct Authority (FCA) also warns consumers about the risks of crypto assets and that they may not lose a lot of money, but all of their money if they invest in them.
“We regularly warn consumers that crypto assets are unregulated and their risk is high, which means that people are unlikely to have any protection if things go wrong, so people should be prepared to lose all their money if they decide to invest in it.”
Salvadorans haven’t felt Bitcoin “profits” in their pockets in the past six months
Warning
In El Salvador, although Bitcoin has been legal tender since September 7, 2021 and there are many ATMs operating in different parts of the territory, residents know little about how they operate and whether their Bitcoin funds are backed or not, according to surveys. Opinion conducted by Diario de Hoy on various occasions.
However, in the registry of Bitcoin service providers located on the portal of the Central Reserve Bank (BCR) of El Salvador, there are at least 45 cryptocurrency providers, which according to the state financial entity can operate in the country.
As defined by the BCR: “The Bitcoin Service Providers Registry has been established as stipulated in Section 3 of the Bitcoin Code Regulations, as one of the operating requirements. As a consequence of the above, its effects are those determined by the said legal provision, that is, once the required formalities are met, The applicant will be registered in the registry,” he points out.
On top of the list of registered Bitcoin service providers in El Salvador, Chivo, SA de CV; tracking companies like Paysea Global SA de CV; Realtime, Variable Capital Limited, and others.
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