Ad Customers Unimpressed After Regulators Shut Bitcoin ATM

Customers who showed up to buy cryptocurrency at a pub in Devon had to be turned away following new rules from regulators.

Disappointed bitcoin enthusiasts had previously used a hypermodern bitcoin ATM-style machine at the old-world Bishop Lacy Inn in Chudleigh.

But since the government cracked down on crypto ATMs, the pub has kept people away from the machine for 15 months. Meanwhile, the owners of the company that installed the machines in Devon have applied for a license.

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The ATM is still in place at the pub, but the power has been cut until proper permission has been granted by the Financial Conduct Authority (FCA).

Meanwhile, the owners of the Bishop Lacy — the oldest building in the world to have a Bitcoin ATM — found themselves turning away customers and explaining to callers that everything was on hold.

A pub spokesperson said: “Our application has been ongoing for approximately 15 months. The machine is still in place but we cannot use it.

“We used to take a lot of money every month from this machine to put into bitcoin. You’d be amazed at how many people buy, even in a small town like Chudleigh.

“We get calls all the time from people wanting to come in and use the machine. It’s a shame the FCA hasn’t given their clearance yet because now is the right time to buy.

Steve Underwood of SatoshiUK, one of three directors of the company which installed the ATM at Bishop Lacy, said: ‘FCA are extremely diligent.

“It’s such a shame because everything is on hold and we were providing service to people.

“For a small town like Chudleigh, we were doing well – people came from all over.

“Our main customers were the over 55s and women. The other day I got a phone call from the one in Paignton saying people are ringing all the time asking when they can come and use the machine.

According to the FCA, Crypto ATMs offering crypto-asset exchange services in the UK must be registered with us and comply with UK Money Laundering (MLR) regulations.

“None of the crypto-asset companies registered with us have been licensed to offer crypto-vending machine services, meaning one of them operating in the UK is doing so illegally and consumers should not use them.”

According to recent statistics, there are around 80 Bitcoin ATMs operating in the UK, none of which have been approved to offer crypto ATM services.

“We regularly warn consumers that crypto assets are unregulated and high risk, which means people are very unlikely to get protection if things go wrong, so people should be prepared to lose all their money if they choose to invest in them,” the FCA said in a statement.

Bitcoin ATMs were introduced in 2014 when there were only 301 such machines in the world.

Bitcoin ATMs are particularly appealing to crypto investors because they can bypass the cumbersome Know Your Customer (KYC) procedures common on cryptocurrency trading platforms.

There are now nearly 34,000 cryptocurrency ATMs available around the world that provide users with options to buy and exchange cryptocurrencies with fiat currency (real money).

Although these ATMs can be found all over the world, 90% of them operate in the United States, while Canada comes in second with just over 2,200 machines.

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