Crypto ATM Seizures Spark Global Regulatory Push

Key Takeaways

• Seven Crypto ATMs were seized in southwest London, and two people arrested for operating without FCA registration.
• The UK currently has no legal Crypto ATMs, and unlicensed operation is a criminal offense.
• A federal bill in the US proposes refund protections for scam victims and transaction limits for new users.
• The FBI reports $247 million lost to Crypto ATM scams in 2023.
• The United States hosts nearly 80% of the world’s Crypto ATMs, making regulatory clarity crucial.

Crypto ATMs Seized in the UK Amid Money Laundering Probe

In a targeted enforcement operation, the UK Financial Conduct Authority (FCA) and the Metropolitan Police seized seven crypto ATMs in southwest London. The crackdown also led to the arrest of two individuals suspected of money laundering and operating an illegal cryptocurrency exchange.

Source: fca.org.uk

According to the FCA, since January 2021, any crypto-related business in the UK must be registered with the authority and comply with anti-money laundering (AML) regulations. Currently, there are no legally operating Crypto ATMs in the country.

The two suspects were interviewed and released under investigation as authorities continue their inquiries.

Why Are Crypto ATMs Being Targeted?

Crypto ATMs offer convenience for buying and selling digital currencies like Bitcoin, but they also present vulnerabilities. These kiosks can be exploited by criminals for:

• Money laundering

• Tax evasion

• Phishing and impersonation scams

Due to their unregulated nature and cash-based functionality, Crypto ATMs can be difficult for law enforcement to monitor without proper oversight.

Growing Concerns In The United States

Wisconsin Lawmakers Introduce New Legislation

Across the Atlantic, US states are also tightening their grip on Crypto ATMs. In Wisconsin, lawmakers Senator Kelda Roys and Representative Ryan Spaude introduced a bill aimed at increasing consumer protections for crypto kiosk users. The legislation proposes to:

• Enforce daily transaction limits

• Mandate fraud warnings on kiosks

• Prevent deceptive pricing and hidden fees

The proposal follows a wave of crypto-related scams in the state, many of which targeted elderly users through impersonation and phishing techniques.

Nationwide Fraud Prevention Efforts

On a federal level, Senator Dick Durbin (D–IL) introduced the Crypto ATM Fraud Prevention Act in February 2025. This bill aims to:

• Display mandatory scam warnings

• Limit transaction amounts for new customers

• Offer full refunds to scam victims who report fraud within 30 days

The bill is part of a larger effort to combat fraud, which resulted in $247 million in losses tied to Crypto ATM scams in 2023, according to the FBI.

Global Crypto ATM Landscape

Despite increased regulatory scrutiny, the United States remains the global leader in Crypto ATM deployment. According to CoinATMradar, the US hosts approximately 78.4% of the world’s Bitcoin ATMs.

Crypto ATMs Global Distribution

Source: CoinATMradar

These machines are commonly found in gas stations, convenience stores, and shopping centers, making them easily accessible — and increasingly attractive to fraudsters.

FAQ: Crypto ATM Regulations and Risks

What is a Crypto ATM?

A Crypto ATM is a physical kiosk that allows users to buy or sell cryptocurrencies using cash, debit, or credit cards. Most are focused on Bitcoin but can support other digital currencies.

Are Crypto ATMs legal in the UK?

No. As of now, there are no registered and legal Crypto ATMs in the UK. Operating one without FCA approval is considered a criminal offense.

What are common scams involving Crypto ATMs?

The most common scams include phishing attacks, impersonation of government officials, and fake utility payment demands.