Illegal crypto ATMs in the UK: what FCA enforcement means for clients and professionals
UK enforcement against illegal crypto ATMs highlights a bigger risk: unverified on-ramps and poor audit trails. Here is how to protect clients and estates.
Introduction
Illegal crypto ATMs are not just a news story. They are a signal of a larger problem: unverified on-ramps, weak documentation, and transactions that become hard to evidence later, especially when a client dies or loses access. Non-custodial coordination. Not financial advice. Back to Insights: /insights
What is an illegal crypto ATM in practice?
In the UK, crypto ATMs have been a focus of enforcement where operators are not compliant with required standards. From a client-outcome perspective, the key issue is that these routes often produce poor evidence and weak consumer protections. The FCA has been active in enforcement against non-compliant operators, but the bigger issue for clients and professionals is the documentation gap these transactions create.
Why this matters for advisers, accountants and solicitors
Key risks professionals should understand: 1. Provenance risk: unclear source of funds explanations become harder later 2. Record risk: clients may not retain receipts, addresses, or transaction context 3. Estate risk: executors cannot reconstruct what happened or where assets went 4. Scam risk: ATMs can be used in scam journeys where victims are told to pay here to unlock funds These risks compound over time and become especially problematic during probate or tax investigations.
Operational reality: evidence beats opinions
Professionals often inherit problems late: a client has used multiple on-ramps, has partial records, and now needs a clean narrative for tax, compliance, or probate. That is why a consistent evidence approach matters: identifiers, records, and an agreed workflow to retrieve information from platforms and devices. Without this foundation, reconstruction becomes expensive and sometimes impossible.
What Bitzo changes
Bitzo helps professionals and clients reduce chaos by building a recoverable, documented plan without taking custody. What we provide: 1. Evidence packs designed to reduce disputes and delays 2. Verified trusted contacts and escalation pathways 3. Security hygiene and scam-resistant processes Learn more at /security (Security) and /inheritance (Inheritance). For the workflow overview: /how-it-works (How It Works).
Quick checklist
Reducing ATM and unverified on-ramp risk: 1. Ask the route: exchange, broker, ATM, P2P, cash-to-crypto 2. Capture identifiers: receipts, timestamps, wallet addresses, device used 3. Document intent: what was the purpose of the purchase or transfer? 4. Set a record standard: ensure future transactions meet minimum documentation 5. Scam screen: ask whether someone instructed the client to do this 6. Verify the operator is FCA registered where applicable 7. Create a timeline of all crypto transactions 8. Store documentation securely with backup copies
Next steps
Ready to help clients with crypto planning? Explore our adviser programme at /advisers or book a call at /book. Related reading: /insights/crypto-recovery-scams-uk and /insights/hmrc-crypto-tax-record-keeping-uk Back to Insights: /insights
Frequently Asked Questions
Is using a crypto ATM always illegal?
Not necessarily. The issue is whether the operator is compliant with UK requirements and whether the route creates reliable evidence for tax and probate purposes.
Why do records matter so much?
Because tax, disputes and probate are evidence-led processes. Without documentation, reconstruction becomes expensive and sometimes impossible.
What should we capture at minimum?
Date and time, route used, receipts, wallet addresses, and the reason for the transfer.
How does this impact probate?
Executors may struggle to prove what exists and how to access it if documentation is missing. This creates delays and potential disputes.
Does Bitzo custody funds?
No. Bitzo is entirely non-custodial. We never hold, store, or request private keys or seed phrases.
What is the first step for professionals?
Standardise record keeping and build a recovery workflow before a crisis occurs.
How does Bitzo verify trusted contacts?
Through recorded calls, rotating verification codes, and cross-referencing against documentation. Every step is logged with full audit trails.
Can clients fix gaps in their records?
Often yes. Exchange exports, blockchain records, and device logs can help reconstruct history, though earlier is always better than later.
Sources
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