UK watchdogs raised questions on the crypto ATMs operator companies that how they are operating services without any permission or regulatory approval.
The UK is a blockchain-friendly region in the world. In the past years, UK regulators showed huge interest in the crypto & blockchain industry, to provide safety to the citizens to keep them away from any kind of fraud in crypto-related investment or services.
Recently a crypto ATMs services provider company Gidiplus, raised its dispute against the watchdogs of the UK because the company was willing to start its services but its application was pending in the UK’ FCA department.
However, the raised case of Gidiplus has been dismissed because of a lack of evidence or facts, on the operations of this company on how it will follow the compliance and rules perfectly under its operations.
“lack of evidence as to how Gidiplus would undertake its business in a broadly compliant fashion,” the court statement
On 11 March, The financial conduct authority (FCA) took the reference of this case and noted that all the 27 fully registered crypto companies in the UK are not authorized to offer crypto ATM services, so all these are illegal. And also ordered every crypto ATM to get registered & to get regulatory approval from FCA.
Under the law orders, all the crypto ATMs should follow the guidelines to ensure the non-violation of Anti Money Laundering (AML) laws.
It is strange to see how these crypto companies may take such steps without legal approval. Rules and regulations of the UK are highly strict for the crypto companies but still, Crypto ATMs services are going on without regulatory approval is very strange.
At present, only 27 crypto companies have regulatory approval to operate their services in the UK. But besides all these companies, there are a total of 106 pending applications filed by crypto companies to operate services in the UK but 56 applications have been rejected or withdrawn by companies themselves.