Authorities in the UK have seized seven illegal cryptocurrency ATMs and arrested two individuals in southwest London for suspected money laundering and running an unregistered crypto exchange. The operation, led by the Financial Conduct Authority (FCA) and the Metropolitan Police, comes amid increasing scrutiny of kiosk-based exchanges across the country.

Since January 2021, crypto firms in the UK must register with the FCA and comply with anti-money laundering laws. There are currently no FCA-approved crypto ATMs in operation, and using one without approval is a criminal offense. FCA enforcement director Therese Chambers warned that unlicensed operators will face “serious consequences.”

The suspects have been released while investigations continue.

Across the Atlantic, U.S. lawmakers are also addressing growing concerns over crypto ATM fraud. In Wisconsin, where crypto kiosks are widely used, legislators have introduced a bill targeting scams, hidden fees, and deceptive practices. The bill, sponsored by Senator Kelda Roys and Representative Ryan Spaude, aims to improve transparency, regulate pricing, and protect consumers—particularly older and vulnerable groups who are frequent scam targets.

Phishing scams, where fraudsters impersonate government officials or police, are the most common form of crypto ATM fraud. According to the FBI, Americans lost an estimated $247 million to such scams in 2023.

At the federal level, Senator Dick Durbin has proposed the Crypto ATM Fraud Prevention Act, which would mandate warning notices on machines, set transaction limits for new users, and offer refunds to scam victims who report incidents within 30 days.

As of now, the U.S. hosts over 78% of the world’s Bitcoin ATMs, according to Coinatmradar, putting it at the center of both innovation and rising risk in the crypto ATM space.