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posted by janrinok on Monday March 14 2022, @01:32PM   Printer-friendly

UK's financial regulator orders shutdown of all Bitcoin ATMs:

The Financial Conduct Authority (FCA) has warned operators of cryptocurrency ATMs in the UK to shut down their machines or else face enforcement action. In its announcement, the financial watchdog said that it hasn't granted any of the crypto firms registered with it the permission to operate ATM services. That means all crypto ATMs in the UK are illegal.

"Crypto ATMs offering cryptoasset exchange services in the UK must be registered with us and comply with UK Money Laundering Regulations," the regulator wrote. As The Telegraph reports, there are around 81 functional crypto ATMs in Britain based on data from the Coin ATM Radar tracker, located mostly inside supermarkets and convenience stores.

These ATMs allow users to deposit cash in exchange for cryptocurrency, which they can then transfer to their digital wallets. The regulator previously raised concerns that the machines could be used for money laundering, because they require minimal background checks, especially for small deposits.


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  • (Score: -1, Troll) by Anonymous Coward on Monday March 14 2022, @01:34PM (8 children)

    by Anonymous Coward on Monday March 14 2022, @01:34PM (#1229053)

    What right do they have to do this? There is a law for anything out there that the gov can use to control everyone. They fear BitCoin.

    • (Score: 3, Touché) by PiMuNu on Monday March 14 2022, @01:40PM (5 children)

      by PiMuNu (3823) on Monday March 14 2022, @01:40PM (#1229055)

      Money laundering is a thing. Ask the Russians (well, and Ukrainians, but that isn't fashionable).

      • (Score: 0) by Anonymous Coward on Monday March 14 2022, @02:01PM

        by Anonymous Coward on Monday March 14 2022, @02:01PM (#1229057)

        Yes, it's a thing. Having a bit of money, I have to go through those bank checks from time to time. Often nothing more than a few questions (by email) that I go along with, because I don't want to be bothered with it, BUT I can also see the things that would be easy to sneak through if I was in that ML business.

        Personally, I think the major cause of this "security circus" is that banks fired most of their counter employees to do "everything online, done by yourself". No contact with your clients any more and when they deposit some money, you don't know who they are (because all you have is a home made copy of their ID).

      • (Score: 0) by Anonymous Coward on Monday March 14 2022, @07:19PM (2 children)

        by Anonymous Coward on Monday March 14 2022, @07:19PM (#1229127)

        no, money laundering is a bullshit crime made up to subjugate normal people under the guise of making it easier for lazy pigs who won't do their jobs to catch people who are committiing actual crimes (in some cases. many times even the primary "crimes" are not actually crimes.)

        • (Score: 3, Interesting) by deimtee on Monday March 14 2022, @07:28PM (1 child)

          by deimtee (3272) on Monday March 14 2022, @07:28PM (#1229135) Journal

          The government in general doesn't really have a problem with those crimes. What they have a serious problem with is those criminals dodging the taxes on their crimes.

          --
          200 million years is actually quite a long time.
          • (Score: 3, Informative) by Freeman on Monday March 14 2022, @07:53PM

            by Freeman (732) on Monday March 14 2022, @07:53PM (#1229145) Journal

            Case in point: https://en.wikipedia.org/wiki/Al_Capone [wikipedia.org]

            The main effect of Capone's conviction was that he ceased to be boss immediately on his imprisonment, but those involved in the jailing of Capone portrayed it as considerably undermining the city's organized crime syndicate. Capone's underboss, Frank Nitti, took over as boss of the Outfit after he was released from prison in March 1932, having also been convicted of tax evasion charges.[127] Far from being smashed, the Outfit continued without being troubled by the Chicago police, but at a lower level and without the open violence that had marked Capone's rule. Organized crime in the city had a lower profile once Prohibition was repealed, already wary of attention after seeing Capone's notoriety bring him down, to the extent that there is a lack of consensus among writers about who was actually in control and who was a figurehead "front boss".[81]: 468–469, 517–518, 524–527, 538–541 [77] Prostitution, labor union racketeering, and gambling became moneymakers for organized crime in the city without incurring serious investigation. In the late 1950s, FBI agents discovered an organization led by Capone's former lieutenants reigning supreme over the Chicago underworld.[128]

            Some historians have speculated that Capone ordered the 1939 murder of Edward J. O'Hare a week before his release, for helping federal prosecutors convict Capone of tax evasion, though there are other theories for O'Hare's death.[129]

            --
            Joshua 1:9 "Be strong and of a good courage; be not afraid, neither be thou dismayed: for the Lord thy God is with thee"
      • (Score: 2) by mcgrew on Tuesday March 15 2022, @01:44PM

        by mcgrew (701) <publish@mcgrewbooks.com> on Tuesday March 15 2022, @01:44PM (#1229304) Homepage Journal

        Money laundering is a thing. Ask the Russians

        I suspect he IS a Russian, since he has such a dim view of government. If he were a citizen of a democratic nation like the UK, he would know that WE, THE PEOPLE choose our governments, unlike the Russians, Chinese, and other authoritarian hell holes.

        --
        Impeach Donald Palpatine and his sidekick Elon Vader
    • (Score: 2) by crafoo on Monday March 14 2022, @04:36PM

      by crafoo (6639) on Monday March 14 2022, @04:36PM (#1229088)

      Rights really only exist between relative equals. Everything else is just expression of power over the powerless.

    • (Score: 5, Insightful) by zocalo on Monday March 14 2022, @05:17PM

      by zocalo (302) on Monday March 14 2022, @05:17PM (#1229099)
      The right they have is indeed the law because, like most countries, some things are regulated by the government (or an independant body they appoint, which is the case for the UK's FCA). Obstensibly to ensure that those things are run to certain standards and to ensure that only companies/individuals that meet specified requirements are able to operate, e.g. that people installing and servicing equipment like gas/oil boilers and electrical wiring have been trained to do so, food outlets meet hygiene standards, and that suitable insurance is in place because sometimes stuff happens. How effectively they do so is another matter but, that aside, this is a good thing, because it helps minimise the risk to the consumer and provides a formal avenue of complaint/recompense when there is a problem.

      In the UK, and probably many other countries, this kind of regulation also covers operating ATMs, which is also a good thing because ATMs do occassionally go wrong; cards get eaten, incorrect sums get dispensed, lost/stolen cards can be abused, card readers can have skimmers installed, etc., and because it's regulated and operators need to have insurance, liability for these problems lies with the ATM operator, and not with the card owner. Were that not the case, then an ATM operator (crypto or fiat) could potentially just declare bankrupty and walk away if there was a major problem, or a bad actor had managed to somehow compromise the machines and steal a non-trivial sum. Given the number of crypto scams, I wouldn't be at all surprised if one of the larger scam gangs has at least run the numbers on setting up a crypto-ATM network specifically designed to steal account info and when the time is right empty out a whole bunch of accounts and vanish.
      --
      UNIX? They're not even circumcised! Savages!
  • (Score: 4, Insightful) by drussell on Monday March 14 2022, @02:32PM (2 children)

    by drussell (2678) Subscriber Badge on Monday March 14 2022, @02:32PM (#1229062) Journal

    Don't they know that the money laundering is supposed to remain the domain of the rich and powerful, the elite classes and the financial market middlemen?

    One of the UK's largest industries is literally industrial-scale money laundering, especially the foreign-shady-sourced-money kind...

    • (Score: 0) by Anonymous Coward on Monday March 14 2022, @05:31PM

      by Anonymous Coward on Monday March 14 2022, @05:31PM (#1229105)

      When Greece froze everyone's accounts during their financial crisis in preparation for a national levy, anyone with an existing UK bank account was allowed to withdraw all of their funds in the UK. Vladimir Putin and his cronies were reportedly the biggest block of money that escaped that way.

    • (Score: -1, Flamebait) by Anonymous Coward on Monday March 14 2022, @07:22PM

      by Anonymous Coward on Monday March 14 2022, @07:22PM (#1229129)

      and let's not forget that the Jew monopoly money of western nations is a scam and legalized crime to begin with.

  • (Score: 2) by SomeGuy on Monday March 14 2022, @04:43PM (2 children)

    by SomeGuy (5632) on Monday March 14 2022, @04:43PM (#1229091)

    "Crypto ATMs offering cryptoasset exchange services in the UK must be registered with us and comply with UK Money Laundering Regulations"

    So... what else is Bitcoin used for then?

    • (Score: 2) by Freeman on Monday March 14 2022, @05:01PM

      by Freeman (732) on Monday March 14 2022, @05:01PM (#1229096) Journal

      Banks can't track all of your data, if you're not using them. Thus, you must be trying to Launder Money.

      --
      Joshua 1:9 "Be strong and of a good courage; be not afraid, neither be thou dismayed: for the Lord thy God is with thee"
    • (Score: 3, Insightful) by DannyB on Monday March 14 2022, @07:34PM

      by DannyB (5839) Subscriber Badge on Monday March 14 2022, @07:34PM (#1229138) Journal

      So... what else is Bitcoin used for then?

      Move money into Russia so that Russia can spend it abroad.

      You don't think the AC trolls want Russian Rubles do you?

      --
      Why is it so difficult to break a heroine addiction?
  • (Score: 2) by DannyB on Monday March 14 2022, @05:09PM (9 children)

    by DannyB (5839) Subscriber Badge on Monday March 14 2022, @05:09PM (#1229097) Journal

    Before I do this, I need to be sure that it is completely legal to do so. I wouldn't not want to fail to run afoul of the law.

    Is there some law that specifically makes it legal to put chocolate chips into banana nut muffins? If not, then I am on legally uncertain ground in my baking activities of questionable legality.

    (clues for the clue challenged, this post IS on topic)

    --
    Why is it so difficult to break a heroine addiction?
    • (Score: 2) by Freeman on Monday March 14 2022, @06:07PM (4 children)

      by Freeman (732) on Monday March 14 2022, @06:07PM (#1229110) Journal

      Are you trying to sell said banana nut muffins?
      https://extension.umd.edu/resource/cottage-food-business-law [umd.edu]

      (Please note, laws in your jurisdiction may or may not allow the sale of banana nut muffins, with or without chocolate chips in them.)

      Otherwise, as my mother-in-law would say, you can't have enough chocolate.

      --
      Joshua 1:9 "Be strong and of a good courage; be not afraid, neither be thou dismayed: for the Lord thy God is with thee"
      • (Score: 2) by DannyB on Monday March 14 2022, @07:13PM (3 children)

        by DannyB (5839) Subscriber Badge on Monday March 14 2022, @07:13PM (#1229125) Journal

        Are you trying to sell said banana nut muffins?

        NO !!!

        I wouldn't want to do anything illegal like that unless there were a law that specifically made it legal to do so. I wouldn't even want to make them. I'm just asking hypothetically about the legality of making them "that way". I'm asking for a friend.

        --
        Why is it so difficult to break a heroine addiction?
        • (Score: 2) by Freeman on Monday March 14 2022, @07:30PM (1 child)

          by Freeman (732) on Monday March 14 2022, @07:30PM (#1229137) Journal

          Where's the +1 More Nuts option?

          --
          Joshua 1:9 "Be strong and of a good courage; be not afraid, neither be thou dismayed: for the Lord thy God is with thee"
          • (Score: 2) by DannyB on Monday March 14 2022, @07:36PM

            by DannyB (5839) Subscriber Badge on Monday March 14 2022, @07:36PM (#1229140) Journal

            Does the law specify whether there is and what the limit of nuts might be in banana nut muffins?

            --
            Why is it so difficult to break a heroine addiction?
        • (Score: 3, Touché) by deimtee on Monday March 14 2022, @07:35PM

          by deimtee (3272) on Monday March 14 2022, @07:35PM (#1229139) Journal

          I'm asking for a friend.

          Even if, hypothetically, it was legal to put chocolate chips in Banana Nut muffins, you are obviously guilty of conspiracy to put chocolate chips in Banana Nut muffins.

          --
          200 million years is actually quite a long time.
    • (Score: 3, Insightful) by Mykl on Monday March 14 2022, @10:47PM (2 children)

      by Mykl (1112) on Monday March 14 2022, @10:47PM (#1229189)

      This is what happens when you have a Bill of Rights which specifies what you can do rather than sets of laws which lay out what you can't do. In most Western Democracies you can put chocolate chips into banana nut muffins unless there is a law on the books specifically saying you can't.

      Personally, I would be tempted to charge you with false advertising as we all know that banana plants don't produce nuts!

      • (Score: 2) by DannyB on Tuesday March 15 2022, @01:50PM (1 child)

        by DannyB (5839) Subscriber Badge on Tuesday March 15 2022, @01:50PM (#1229306) Journal

        Even if a democracy is permissive and allows everything that is not specifically forbidden by law, the government can still try to repurpose some other law against you if you do something that ruffles their feathers. If they have feathers. Bird-brained does not necessarily mean having features; rather it comments on the size of a government's collective brain.

        This kind of permissive democracy that allows everything except what is specifically forbidden, works like early OSes, but unlike modern OSes.

        What if I had two ATMs? The first could exchange between digital currency and some special kind of "trading cards". Then across the street another ATM could exchange between these special trading cards and ordinary currency. Would that be illegal? What if we introduced a third step, three ATMs:
        1. Exchange digital currency for sealed packaged Banana Nut Muffins with chocolate chips and RFID chips
        2. Exchange said muffins for trading cards
        3. Exchange between trading cards and ordinary cash

        Speaking of false advertising; McDonalds sausage burritos come with some packets of sauce that are fraudulently labeled as "hot" sauce.

        --
        Why is it so difficult to break a heroine addiction?
        • (Score: 0) by Anonymous Coward on Wednesday March 16 2022, @03:47AM

          by Anonymous Coward on Wednesday March 16 2022, @03:47AM (#1229538)

          Why do you need an infinite number of ATMs to legally launder money? What do you think NFTs are for?

    • (Score: 2) by mcgrew on Tuesday March 15 2022, @01:50PM

      by mcgrew (701) <publish@mcgrewbooks.com> on Tuesday March 15 2022, @01:50PM (#1229307) Homepage Journal

      Is there some law that specifically makes it legal to put chocolate chips into banana nut muffins?

      Where do you live, Russia? Oceana? In the US, and I presume other democratic societies as well, anything not specifically outlawed is legal. Only in your native North Korea (or is it Russia?) is anything not stated by law to be legal is illegal.

      --
      Impeach Donald Palpatine and his sidekick Elon Vader
  • (Score: 2, Insightful) by Anonymous Coward on Monday March 14 2022, @08:28PM (2 children)

    by Anonymous Coward on Monday March 14 2022, @08:28PM (#1229158)

    The money laundering pillar is the only pillar holding up cryptocurrencies. Take that out and the whole structure collapses! That would be devastating to the pretend money economy if all of that pretend money became worthless! How are you going to pay your rent in Monopoly if the bottom falls out of the pretend money market?

    • (Score: 2) by DannyB on Tuesday March 15 2022, @01:57PM

      by DannyB (5839) Subscriber Badge on Tuesday March 15 2022, @01:57PM (#1229310) Journal

      Isn't digital currency good for other constructive productive wholesome uses other than money laundering?

      Wouldn't digital currency be good for ordering merchandise on the dark web and having it delivered to a rented drop box mailing address that auto-forwards received parcels to one of several randomly chosen other rented drop box addresses in TOR like fashion? That way other curious interested parties wouldn't really know exactly where a certain parcel was auto forwarded to.

      Wouldn't digital currency be good for payment of a rented drop box mailing address?

      It would be possible to simply make it expressly illegal to put chocolate chips into banana nut muffins and end the ambiguity of whether it is legal.

      --
      Why is it so difficult to break a heroine addiction?
    • (Score: 0) by Anonymous Coward on Wednesday March 16 2022, @03:15AM

      by Anonymous Coward on Wednesday March 16 2022, @03:15AM (#1229529)

      What's your definition of pretend money here? That it is something not backed by a central bank?

      Why? If some surrogate object is recognized by other human beings as valuable and representative enough to trade goods & services - just because it is not backed by a central bank why would it be "pretend" money?

      cryptocoins are now used as surrogate objects to exchange goods and services by human beings across regions and countries - how is that pretend money?

      It has intrinsic value because of that, it may not be valued the same way traditional central bank valued notes are but it is not "pretend" money like actual monopoly notes.

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