|

Bitcoin price plummets in response to Crypto ATMs shutdown in the UK; pronounced “illegal”

  • Bitcoin price could plunge in response to the Financial Conduct Authority's decision to shut down crypto ATMs in the UK. 
  • The UK's financial regulator warned crypto exchanges that they could face legal action if their ATMs were not shut down. 
  • The United Kingdom's stance on crypto-related ATMs has worsened the anti-money laundering requirements imposed on exchanges. 

Bitcoin price struggles to recover as the UK's financial regulator considers BTC ATMs illegal. The authority requires cryptocurrency exchanges to shut down, negatively impacting Bitcoin's adoption. 

Bitcoin price could suffer a drop as UK condemns BTC ATMs

Bitcoin price posted 11.9% losses over the past month. The UK's financial conduct authority (FCA), the regulator of over 51,000 firms and markets in the United Kingdom, has pronounced Bitcoin ATMs illegal. 

The move comes amidst rising concerns on money laundering in the UK. All Bitcoin cashpoints are required to be shut down, as FCA demands exchanges to cease operations of BTC ATMs. In the case exchanges don't meet the legal requirements, they could face the risk of enforcement action. 

ATMs allow investors to convert their Bitcoin to cash; authorities believe that these machines facilitate money laundering in the economy. Though the Bitcoin blockchain's transparency has helped track down criminals in the past, nearly 80 BTC ATMs in the UK will now be shut down. 

The FCA requires supermarkets and stores that house Bitcoin ATMs to shut down operations of the cashpoint, as these facilities are not licensed. FCA believes that cryptocurrency exchanges fail to sufficiently check the background of operators backgrounds, which negatively influences the economy. 

The ban on Bitcoin ATM operations in the UK could result in a drop in BTC adoption in the country. This could result in a drop in the transaction volume of Bitcoin across exchanges. The FCA believes that Bitcoin ATMs could be used for illicit activities and funding terrorist financing; therefore, a ban on their operations is an anti-money laundering measure in the UK. 

Author

Ekta Mourya

Ekta Mourya

FXStreet

Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.

More from Ekta Mourya
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

AAVE slips below $186 as bearish signals outweigh the SEC investigation closure

Aave (AAVE) price continues its decline, trading below $186 at the time of writing on Wednesday after a rejection at the key resistance zone. Derivatives positioning and momentum indicators suggest that bearish forces still dominate in the near term.

Hyperliquid stabilizes amid plans to burn assistance fund

Hyperliquid (HYPE) stabilizes above $26 at press time on Wednesday after three straight days of losses. Hyperliquid Foundation has started a validator vote to reduce supply by burning the assistance fund, which holds over 37 million HYPE tokens.

Top 3 Price Prediction: Bitcoin, Ethereum, Ripple extend correction as bearish momentum builds

Bitcoin, Ethereum, and Ripple remain under pressure as the broader market continues its corrective phase into midweek. The weak price action of these top three cryptocurrencies by market capitalization suggests a deeper correction.

Ethereum Price Forecast: Active addresses plunge to May levels amid resumption in US selling pressure

Ethereum (ETH) weekly active addresses have plunged sharply in December, declining from 440K to 324K, levels last visited in May. The decline in active addresses has also pushed down the number of transactions on the network to July lows.

Orange Juice Newsletter – Smart insights by real people. Every day.

A free newsletter highlighting key market trends to help traders stay a step ahead. Daily insights on the most relevant trading topics, compiled by our experts in an easy-to-read format so you never miss an important move.

Bitcoin: Fed delivers, yet fails to impress BTC traders

Bitcoin (BTC) continues de trade within the recent consolidation phase, hovering around $92,000 at the time of writing on Friday, as investors digest the Federal Reserve’s (Fed) cautious December rate cut and its implications for risk assets.