The UK's financial watchdog has revealed that seven cryptoasset ATMs (CATMs) have been seized as part of an operation led by the regulator and the Metropolitan Police.

The Financial Conduct Authority (FCA) said that two people have also been arrested on suspicion of money laundering and running an illegal cryptoasset exchange.

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.

During a search of four premises across southwest London, the CATMs were found and seized by the FCA.

“If you’re operating a crypto ATM or exchange illegally, then you should expect serious consequences," said Therese Chambers, executive director of enforcement and market oversight at the FCA. "There are currently no legally-operated crypto ATMs in the UK, so using one only supports crime.

"We will continue to partner with law enforcement agencies to fight financial crime and protect consumers.”

Last September, the FCA charged the first individual with running a network of illegal CATMs.

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.

Speaking about the recent charges, detective inspector Geoff Donoghue, of the Met’s Cryptocurrency Team, said: “Our team is committed to working alongside our partners to address the growing threat of the misuse of cryptocurrencies. As cryptocurrency usage evolves, so does our efforts to safeguard our communities. This operation with the FCA shows our determination to keep Londoners safe from financial criminals.”

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