The Financial Conduct Authority (FCA) has announced it is cracking down on illegal crypto ATMs.

The UK financial watchdog said it has inspected several sites around Leeds suspected of hosting these machines, which allow customers to buy or convert funds into cryptoassets.

Cryptoasset exchange providers, which includes crypto ATM operators, must be registered with the FCA.

There are currently no operators with registration for these machines in the UK.

The regulator gathered evidence from several sites around the city as part of a joint operation with West Yorkshire Police’s Digital Intelligence and Investigation Unit.

The move is part of the authority’s wider crack down on illegal crypto ATMs, with the FCA currently working with several law enforcement partners, including local police forces.

The FCA said that it will review evidence gathered during these visits and consider further potential enforcement action.

“We will continue to identify and disrupt unregistered crypto businesses operating in the UK,” said Mark Steward, executive director of enforcement and market oversight, FCA. “Crypto businesses operating in the UK need to be registered with the FCA for anti-money laundering purposes."

He warned that crypto products are highly unregulated and high-risk, so investors should be prepared to "lose all of their money".

“Having conducted intelligence gathering work across West Yorkshire, we soon established the locations of several live crypto ATMs," said detective sergeant Lindsey Brants of the Force Cyber Team, West Yorkshire Police. “Warning letters were issued requesting the operators cease and desist using the machines and that any breach of regulations would result in an investigation under money-laundering regulations,"

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