- Bitcoin prices could plunge on the Financial Conduct Authority’s decision to shut down ATMs in the UK.
- UK financial regulators are warning cryptocurrency exchanges that they could face legal action if their ATMs are not shut down.
- The UK’s stance on cryptocurrency ATMs has deteriorated due to anti-money laundering requirements imposed on exchanges.
Bitcoin prices have struggled to recover as the UK financial regulator deemed the BTC ATM illegal. Authorities have called for the closure of cryptocurrency exchanges, which has had a negative impact on bitcoin adoption.
Bitcoin Price Could Fall as UK Condemns BTC ATMs
The price of bitcoin has fallen 11.9% in the past month. The UK's Financial Conduct Authority (FCA), the regulator of more than 51,000 companies and markets in the UK, has declared bitcoin ATMs illegal.
The move comes at a time of growing concern over money laundering in the UK. As the FCA requires exchanges to stop operating BTC ATMs, all Bitcoin cash points must be shut down. If exchanges do not comply with the legal requirements, they could be at risk of enforcement action.
ATMs allowed investors to exchange their bitcoins for cash. Authorities believe the machines contributed to money laundering in the economy. While the transparency of the Bitcoin blockchain has helped track criminals in the past, nearly 80 BTC ATMs in the UK will now be shut down.
The FCA has required supermarkets and stores with bitcoin ATMs to shut down cashpoint operations because the facilities were not licensed. The FCA believes that cryptocurrency exchanges have failed to adequately check the background of their operators' backgrounds, which has had a negative impact on the economy.
The ban on Bitcoin ATM operations in the UK could lead to a drop in Bitcoin adoption in the country. This could lead to a drop in the volume of bitcoin transactions on exchanges. The FCA believes that Bitcoin ATMs can be used for illegal activities and financing of terrorism; therefore, banning their operations is an anti-money laundering measure in the UK.