UK Seizes Seven Crypto ATMs in London, Arrests Two for Money Laundering Wisconsin Introduces Legislation to Protect Consumers from Crypto ATM Fraud US Senator Proposes Nationwide Crypto ATM Fraud Prevention Act

In a significant move to curb illegal cryptocurrency activities, UK authorities recently seized seven crypto ATMs in southwest London and arrested two individuals on suspicion of money laundering and operating an unauthorized crypto exchange. This operation, led by the Financial Conduct Authority (FCA) and the Metropolitan Police, underscores the UK's stringent regulatory environment, which has been in place since January 2021. This environment mandates that all crypto businesses register with the FCA and comply with anti-money laundering (AML) laws.

Therese Chambers, the enforcement director of the FCA, emphasized the risks associated with illegal crypto ATMs, stating that their use facilitates criminal activities and undermines market integrity. The FCA's zero-tolerance approach aims to eliminate unregulated kiosks that often lack transparency and consumer protections. This enforcement action not only disrupts illicit networks but also signals the UK’s commitment to aligning crypto operations with established financial regulations.

Meanwhile, across the Atlantic, US states are proactively addressing the vulnerabilities posed by crypto ATMs. Wisconsin, in particular, has introduced legislation designed to protect consumers from fraud, deceptive pricing, and hidden fees prevalent in crypto kiosk transactions. This bill, spearheaded by Senator Kelda Roys and Representative Ryan Spaude, seeks to implement safeguards including mandatory fraud warnings and transaction limits to curb financial losses caused by scams.

This legislative effort responds to a surge in crypto-related fraud, especially phishing scams that exploit vulnerable populations by impersonating authorities to coerce victims into transferring funds. The FBI reported losses of approximately $247 million in 2023 linked to crypto ATM scams, underscoring the urgent need for regulatory intervention.

On a federal level, Senator Dick Durbin introduced the “Crypto ATM Fraud Prevention Act” in early 2025, proposing nationwide standards such as visible fraud warnings on kiosks, transaction caps for new users, and refund provisions for victims reporting scams within 30 days. These measures aim to harmonize protections across states and address the fact that the US hosts over 78% of the world’s Bitcoin ATMs.

By establishing clear legal guardrails, these initiatives seek to foster a safer environment for cryptocurrency adoption while mitigating risks associated with physical crypto access points. Industry stakeholders and consumers are encouraged to stay informed about evolving regulations to ensure compliance and safeguard their assets.

The recent UK crypto ATM seizures and the advancing US legislative efforts collectively illustrate a global trend toward stricter oversight of cryptocurrency infrastructure. With illegal crypto ATMs facilitating money laundering and fraud, regulatory bodies are prioritizing enforcement and consumer protection. Market participants should recognize the importance of operating within legal frameworks and advocate for transparent, secure crypto services. As regulatory landscapes evolve, staying compliant will be essential for fostering trust and sustainable growth in the crypto sector.