The Financial Conduct Authority said the law mandates all providers of digital currency services to seek registration with the regulators, and the requirement extends to digital currency ATM regulators.
The U.K. regulator has said that none of the operating digital asset ATM operators are registered to offer such services and must shut down immediately or face regulatory action.
The Monetary Authority of Singapore recently clamped down on avenues that led investors to get into digital assets on impulse, and ATMs were high on the list.
U.S. Government Accountability Office said that since digital currency ATMs are not as strictly regulated, they can allow human traffickers to move funds discreetly and recommend tougher measures.
In a new report, the law enforcement agency said drug traffickers were turning to digital currency ATMs as a way of illegally transferring money to avoid detection.
A notice confirms that digital currency ATMs constitute banking business, meaning they fall within BaFin’s regulatory remit.
Police in Hong Kong have arrested three people who they claim stole close to $30,000 from BTC ATMs in the city.
The German regulator said Shitcoins Club wasn’t licensed to facilitate ‘proprietary trading on a commercial basis.’
Firms operating digital currency ATMs are technically operating digital asset exchanges, which need to be authorized by the regulator.
Paxful has entered into a partnership with CoinLogiq, a blockchain company out of Colombia, to begin to install crypto ATMs in the country, as well as Peru.