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