FCA and Police Raid Unregistered Crypto Kiosks in London
In a growing crackdown on crypto ATM fraud, UK authorities have seized seven unregistered cryptocurrency ATMs in southwest London, arresting two individuals under suspicion of money laundering and operating an illegal crypto exchange.
The coordinated operation was led by the UK Financial Conduct Authority (FCA) and Metropolitan Police. According to the FCA, no legal crypto ATMs are currently allowed to operate in the UK unless registered and compliant with anti-money laundering (AML) laws enacted in January 2021.
“There are currently no legally-operated crypto ATMs in the UK,” said the FCA, warning that using them contributes to financial crime.
The suspects were later released under investigation as the FCA continues to pursue enforcement against unlicensed crypto services.
U.S. States Respond to Crypto ATM Scams
While the UK clamps down on physical crypto machines, U.S. lawmakers are responding with new regulations. In Wisconsin, a bill has been introduced to limit daily transaction volumes on crypto ATMs and mandate scam warnings for users.
The legislation, backed by Senator Kelda Roys and Representative Ryan Spaude, aims to address rising concerns over fraud, hidden fees, and deceptive pricing targeting vulnerable populations — especially elderly victims.
“Cryptocurrency is here and actively being used — and we need to take steps to stop Wisconsinites from getting screwed,” said Roys.
According to the FBI, victims lost $247 million in crypto ATM-related scams in 2023, largely due to phishing schemes where fraudsters impersonate officials to trick victims into sending crypto.
Federal Action Also Underway
On a national level, the Crypto ATM Fraud Prevention Act was introduced in February 2025 by Senator Dick Durbin (D–IL). The bill proposes:
- Mandatory scam alerts on all crypto kiosks
- Transaction limits for new users
- Full refunds to scam victims who report fraud within 30 days
If passed, the act would create a federal framework to protect users across all 50 states from crypto ATM-related crime.
Final Thoughts
As global crypto adoption grows, governments are accelerating efforts to regulate kiosk-based crypto exchanges. From seizures in the UK to legislative action in the U.S., it’s clear that crypto ATMs are under growing scrutiny — and operators must now meet higher compliance standards or face serious consequences.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.