Man Jailed for Running Illegal Crypto ATMs in UK’s First Unregistered Crypto Case
A man has been sentenced to four years in prison after being convicted in the UK’s first-ever prosecution for unregistered cryptoasset activity. The case, brought by the Financial Conduct Authority (FCA), marks a significant moment in the country’s crackdown on illicit crypto operations.
The individual, whose identity has not been disclosed due to ongoing investigations, was found guilty of operating a network of unregistered cryptocurrency ATMs across multiple UK locations. Between December 2021 and March 2022, the illegal machines processed transactions worth £2.5 million, allowing customers to convert cash into digital assets without proper oversight.
Crackdown on Unregulated Crypto Activity
The FCA has been tightening its grip on crypto-related businesses, insisting that all firms dealing with digital assets must be registered and comply with anti-money laundering regulations. Unlicensed crypto ATMs have been a particular concern, as they can be used to facilitate money laundering and fraud.
“Unregistered crypto businesses pose a serious risk to consumers and the integrity of the financial system,” an FCA spokesperson said. “This sentencing sends a strong message that operating outside the law will have serious consequences.”
Authorities seized the machines during raids last year as part of a broader enforcement effort to clamp down on unlicensed crypto services. The convicted individual was found to have deliberately bypassed regulatory requirements, failing to conduct proper checks on customers and allowing large sums of cash to be converted into cryptocurrency with little oversight.
Crypto ATMs Under Scrutiny
The sentencing highlights growing regulatory concerns over the role of crypto ATMs in financial crime. Unlike traditional bank ATMs, these machines allow users to buy and sell digital currencies, often requiring minimal verification.
In recent months, UK authorities have increased inspections of crypto ATMs, warning operators that unregistered machines will be shut down.
“The public should be extremely cautious when using these services,” a financial crime expert warned. “If a crypto ATM isn’t clearly registered and regulated, it could be part of an illegal operation.”
With regulators taking a harder stance, businesses operating in the digital asset space are being urged to ensure full compliance. Meanwhile, the FCA has reiterated its commitment to bringing enforcement actions against those flouting the rules.