UK regulators have questioned cryptocurrency ATM operator companies about how they can operate their services without any licensing or regulatory approval.
The UK is a blockchain friendly region in the world. In the past few years, UK regulators have shown great interest in the cryptocurrency and blockchain industry to provide security to citizens from any fraud in cryptocurrency-related investments or services.
Gidiplus, a cryptocurrency ATM service provider company, recently filed a dispute against the UK regulator over the company's willingness to start its services, but its application is pending with the UK's FCA department.
However, the case brought by Gidiplus was dismissed for lack of evidence or facts as to how the company would operate in perfect compliance and rules under which it operates.
“There is a lack of evidence as to how Gidiplus will conduct its business in a broadly compliant manner,” the court declared
On March 11, the Financial Conduct Authority (FCA) referenced the case and stated that all 27 fully registered cryptocurrency companies in the UK are not authorized to provide cryptocurrency ATM services, and therefore all of them are illegal. It also required each cryptocurrency ATM to be registered and receive regulatory approval from the FCA.
By legal order, all cryptocurrency ATMs should follow guidelines to ensure they do not violate anti-money laundering (AML) laws.
It is curious how these cryptocurrency companies are taking such steps without legal approval. The rules and regulations in the UK are very strict for cryptocurrency companies, but it is strange that cryptocurrency ATM services are still going on without regulatory approval.
Currently, only 27 cryptocurrency companies have received regulatory approval to operate their services in the UK. However, in addition to all of these companies, there are 106 applications from cryptocurrency companies to operate their services in the UK, but 56 applications have been rejected or withdrawn by the companies themselves.
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