ALL cryptocurrency ATMs in the UK must be shut down after being declared illegal by the financial watchdog.
The Financial Conduct Authority (FCA) has ordered withdrawals to cease immediately.
Britain has 81 crypto ATMs, all of which are impacted by the ruling.
Failure to halt operations will see providers face legal action.
The machines let users despot cash which can then be turned into cryptocurrency based on the current exchange rate.
It is then transferred into the user’s online wallet for use on the blockchain.
While there are just 81 such machines in the UK, according to tracking website Coin ATM Radar, there are 36,000 crypto ATMs across the world in 76 different countries.
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The FCA warned that the cryptocurrency cashpoints were illegal as the operators of the machines did not have the necessary license.
Anyone offering to exchange money for cryptocurrency must be registered with the regulator and comply with UK money laundering regulations.
The FCA said: “We have warned operators of crypto ATMs in the UK to shut their machines down or face enforcement action.
“Crypto ATMs offering cryptoasset exchange services in the UK must be registered with us and comply with UK money laundering regulations.
“None of the cryptoasset firms registered with us have been approved to offer crypto ATM services, meaning that any of them operating in the UK are doing so illegally and consumers should not be using them.
“We are concerned about crypto ATM machines operating in the UK and will therefore be contacting the operators instructing that the machines be shut down or face further action.”
The FCA has taken a tough approach to cryptocurrency regulation, cracking down on unregulated firms.
It has warned investors that the unregulated nature of the digital coins mean they are a high risk investment.
The body said: “We regularly warn consumers that cryptoassets are unregulated and high-risk which means people are very unlikely to have any protection if things go wrong, so people should be prepared to lose all their money if they choose to invest in them.”
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