The Financial Conduct Authority (FCA) has announced it has charged the first individual with running a network of illegal crypto ATMs.

Cryptoasset ATMs (CATMs) allow consumers to buy or convert cash into cryptoassets but, despite their name, have no link to traditional banking. There are no legal crypto ATM operators in the UK.

The defendant, who is 45 and resides in London, has been charged after running multiple CATMs without FCA registration.

According to the regulator, these ATMs processed £2.6 million in crypto transactions across multiple locations between 29 December 2021 and 8 September 2023 without the required registration.

The charges also mark the FCA's first criminal prosecution relating to unregistered cryptoasset activity under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs).

The move follows the FCA’s recent operation, working in partnership with law enforcement agencies, to tackle illegally operated crypto ATMs across the country.

The UK financial watchdog first demanded firms shut down their unregistered ATMs in 2022, with the winding down of Britain's CATMs moving at a speedy pace following the request.

"Our message today is clear," said Therese Chambers, joint executive director of enforcement and market oversight, FCA. "If you're illegally operating a crypto ATM, we will stop you.

"If you’re using a crypto ATM, you are handing your money directly to criminals. Criminals can exploit crypto ATMs to launder money globally."

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