UK Cracks Down on Unlicensed Crypto ATMs as US States Propose Kiosk Rules
UK authorities, led by the Financial Conduct Authority (FCA) and the Metropolitan Police, seized seven unlicensed crypto ATMs in London and detained two suspects on suspicion of money laundering. The FCA confirmed that no crypto ATMs are legally registered in the UK, making any operation a criminal offence under anti–money laundering (AML) regulations introduced in 2021. FCA enforcement director Therese Chambers warned operators of serious penalties. Globally, regulators are tightening rules: Wisconsin lawmakers proposed a bill to mandate clear fee disclosures, accurate exchange rates and scam warnings at crypto kiosk sites, while Grosse Pointe Farms in Michigan has adopted local ATM regulations despite having none on its streets. Traders should watch this trend closely as heightened crypto ATM regulation may reshape liquidity access and compliance standards.
Neutral
The crackdown on unlicensed crypto ATMs in the UK and proposed US kiosk regulations may limit short-term OTC liquidity and access points for traders, but could enhance long-term market integrity and compliance. While stricter rules pose operational challenges, they also build trust and may broaden institutional participation. The balanced impact on trading volumes and price suggests a neutral market reaction.