Crypto ATMs Seized in London as UK Cracks Down on Illegal Operations

In a significant move to curb illegal activities, seven crypto ATMs were seized and two individuals were arrested in southwest London on Thursday. The operation, led by the UK Financial Conduct Authority (FCA) and the Metropolitan Police, targeted suspected money laundering and the operation of an illegal cryptocurrency exchange.

Since January 2021, any cryptocurrency business operating in the UK must be registered with the FCA and comply with anti-money laundering regulations. Currently, there are no legally operated crypto ATMs in the UK, making the use or operation of such machines without FCA registration a criminal offense.

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

The suspects were interviewed and released under investigation as the inquiry continues. This action underscores the growing scrutiny and regulatory pressure on kiosk-based cryptocurrency exchanges, highlighting the need for compliance with financial regulations to prevent illegal activities.

In a related development, US lawmakers have proposed regulations on crypto ATMs in response to a wave of scams and fraudulent activities. In Wisconsin, a bill introduced by state Senator Kelda Roys and state Representative Ryan Spaude aims to create safeguards against fraud, hidden fees, deceptive pricing, and scams that can result in significant financial losses.

The legislation was introduced after a surge in scams related to digital currencies and crypto kiosks in the state. Roys emphasized the importance of transparency and legal guardrails to protect consumers from scams and criminal exploitation. "Everyone deserves accurate information about the risks of certain types of technology, transparency about the costs and fees, and legal guardrails to prevent scams and criminal exploitation,” she said. “Cryptocurrency is here and actively being used — and we need to take steps to stop Wisconsinites from getting screwed.”

The most common scams involving crypto ATMs are phishing scams, where victims are tricked into sending crypto to fraudsters posing as law enforcement, government officials, or utility companies. These scams often target older and more vulnerable populations.

For the new bill to become law, Spaude and Roys must shepherd the bill through committees, secure committee and floor approval in both the Assembly and Senate, and obtain the governor’s signature. A similar bill was introduced in the US Senate on a federal level in February 2025 by Senator Dick Durbin. If passed, the “The Crypto ATM Fraud Prevention Act” would display warnings on kiosks around the country, enforce limits on new customer transactions, and offer scam victims who report fraud within 30 days a full refund.

This heightened scrutiny and regulatory action reflect a broader trend of increased oversight on cryptocurrency exchanges and ATMs to protect consumers and prevent illegal activities. The seizure of crypto ATMs in the UK and the proposed regulations in the US highlight the global effort to ensure that cryptocurrency transactions are conducted within the bounds of the law.