UK Declares War on Crypto Laundering, 7 ATMs Seized in Blitz

On July 17th, 2025, seven crypto ATMs and two people were taken into custody in southwest London. The operation was made feasible thanks to the cooperation of both the Metropolitan Police and the Financial Conduct Authority (FCA) of the United Kingdom. The arrested individuals were suspected of engaging in money laundering through an illicit cryptocurrency exchange. 

This operation has placed immense pressure on kiosk-based currency exchanges due to increased scrutiny, underscoring the importance of compliance with financial authorities to prevent money laundering.

It was made clear in January 2021 that all UK-based crypto business needs to be registered with the FCA and must fulfill the compliance protocols. Currently, there are no legally operational cryptocurrency ATMs in the UK, making the use of such machines a criminal offense.

Therese Chambers, the FCA’s Executive Director of Enforcement and Market Oversight, states,

“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 arrested individuals were released after being interviewed, but the investigation is still ongoing. This scenario has led to increased global protocols to ensure that cryptocurrency transactions are conducted in accordance with the law.

In response to the increasing rates of scams involving crypto ATMs, US lawmakers have introduced new regulations to prevent fraudulent transactions. Senator and State representatives have introduced a new bill to develop specific protocols against deceptive pricing, hidden fees, and fraud that lead to financial losses. The lawmakers emphasized the need for legal safeguards and transparency to protect customers from illicit financial activities.

“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,” lawmakers said. “Cryptocurrency is here and actively being used, and we need to take steps to stop from getting screwed.”

Crypto scams, also known as phishing scams, primarily target elderly and vulnerable individuals whom they can easily deceive. Lawmakers must pass the bill by both the Senate and the Assembly to make it an official law. A similar law was presented at the federal level in February 2025.. The bill, named “The Crypto ATM Fraud Prevention Act,” would require warning on crypto kiosks around the UK to monitor the new customer transactions, and offer a full refund within 30 days to scam victims.

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