Information on cryptoasset exchange services in the UK - May 2022

FOI Release Date of Release:

Reference Case Number: FOI9140

Freedom of Information: Right to know request:

Please could you tell me, in relation to this page: https://www.fca.org.uk/news/news-stories/warning-illegal-crypto-atms-operating-uk

1. The number of FCA-registered crypto ATMs offering cryptoasset exchange services in the UK.

2.Could you also tell me the number of (or your estimation of) the number of unregistered crypto ATMs offering cryptoasset exchange services you believe to be operating in the UK.

3. The total number of enforcement actions issued by the FCA against crypto ATMs offering cryptoasset exchange services in the UK., and an indication of the types of enforcement action that the FCA uses.

FCA response:

Question 1

We have taken this point of your request to refer to the number of FCA-registered crypto firms offering crypto ATM services.

With this regard, as specified in the Warning on illegal crypto ATMs operating in the UK press release, there are currently no FCA-registered crypto firms offering crypto ATM services.

Question 2

Our estimate is that between 20 and 30 unregistered crypto ATMs might be potentially still operating in the UK. Please note this estimate is based on open-source information that is not verified.

Question 3

As mentioned in the press release, the FCA is contacting a number of cryptoasset ATM operators asking them to confirm that they are not carrying out any activities without being registered with the FCA. In this regard, as of 12 April 2022, we contacted 23 crypto ATM operators and 56 stores in which the machines could be in operation.

We also requested the suspension of 5 websites and 3 social media channels when we had indications that these could have been linked to operators conducting cryptoasset activities without registration.

To date, we have taken no formal enforcement action against a crypto asset provider and no injunctive action has taken place. The types of enforcement action the FCA can take against registered crypto asset providers are set out in Part 9 (Enforcement) of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (the MLRs) and can include the following:

  • Suspend or cancel their registration
  • Request a firm apply a Direction (Power of Direction, Reg 74C) to increase compliance (or we can impose a Direction)
  • Open an enforcement investigation
  • Publicly censure the firm
  • Impose a financial penalty
  • Request an injunction from the court against a firm who we believe has continually non complied with a relevant requirement under the Regulations

For unregistered firms, the FCA is limited to seeking an injunction from a court (Reg 80 MLRs).