Seven crypto ATMs were seized and two people were arrested on Thursday in southwest London after an operation targeting illegal cryptocurrency exchanges.
The UK Financial Conduct Authority and the Metropolitan Police led the raid, which uncovered machines suspected of being used to launder funds. The move highlights growing enforcement against unregistered crypto services.
What Happened and Who Was Involved?
Officers acting on intelligence removed seven kiosks offering digital asset trades for cash. Two individuals were taken into custody on suspicion of running an unlawful exchange and breaching anti‑money laundering rules.
Both suspects were interviewed under caution and then released under investigation as inquiries continue.
Since January 2021, any business handling crypto in the UK must be registered with the FCA and comply with strict AML regulations. There are currently no lawful crypto ATMs in the country. Anyone caught operating one without FCA approval faces criminal charges.
FCA executive director Therese Chambers warned that those who run unlicensed machines should expect serious consequences. She said using illegal ATMs only fuels crime.
Law Enforcement Perspective
Detective Inspector Geoff Donoghue of the Met’s Cryptocurrency Team said the joint effort shows a clear commitment to protect Londoners from financial criminals.
He added that as digital currencies evolve, so must policing tactics. The operation underlines how police and regulators will continue working together to shut down illicit activity in the crypto space.
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Crypto ATMs have become one of the main attractions for fraudsters and scammers, especially in phishing scams. Victims are tricked into sending coins to accounts controlled by criminals acting as officials or companies.
These scams often target older people or someone who is vulnerable people. A 2023 FBI report found that victims lost about $247 million to ATM‑related schemes last year alone, underscoring the high stakes.
Domestic Legislative Efforts
In parallel with enforcement actions, lawmakers in the UK are pushing new rules to protect consumers.
To become law, a proposed bill by Spaude and Roys must pass through committees, win votes in both the Assembly and the Senate, and receive the governor’s signature.
This measure would require crypto ATMs to display warnings, cap new customer transactions, and offer full refunds to scam victims who report losses within 30 days.
International Moves
Across the Atlantic, a similar federal bill was introduced in the US Senate in February 2025 by Senator Dick Durbin. The Crypto ATM Fraud Prevention Act would enforce kiosk warnings, limit transaction sizes, and set up a refund process for victims.Â
In Australia, the financial intelligence agency AUSTRAC has imposed new rules on crypto ATM operators. Each cash transaction is now capped at 5,000 AUD, and providers must step up AML monitoring.Â
Authorities in Tasmania have identified that the top 15 ATM users on the island fell prey to fraud schemes, making it a new front in the fight against crypto crime.
As regulators make the rules and law enforcement tighten, the time of unregulated crypto ATMs in the UK appears to be over. Exchanges and kiosk operators will need full FCA approval if they hope to resume services legally.
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