The Financial Conduct Authority (FCA) has indicted a London resident, Olumide Osunkoya, for operating unlicensed cryptocurrency ATMs, representing the inaugural case of its nature in the UK.
The 45-year-old is charged with managing many illicit crypto ATMs that enabled individuals to purchase and exchange funds for digital currencies without appropriate FCA authorization. From December 2021 to September 2023, these machines facilitated £2.6 million in transactions, all executed in violation of regulatory laws.
The FCA has verified that no lawful cryptocurrency ATMs are functioning in the UK, as the regulatory framework mandates that all crypto-related services, including ATMs, must be registered and adhere to anti-money laundering legislation.
Unregulated crypto ATMs are frequently utilized for illicit operations, such as money laundering, and the absence of regulation allows criminals to exploit these machines for the seamless transfer of unlawful monies across borders.
Therese Chambers, joint executive director of enforcement at the FCA, issued a stern caution against the perils of utilizing illicit crypto ATMs, emphasizing that operating these machines without FCA authorization is not only unlawful but also facilitates criminal enterprises. The FCA’s emphasis on dismantling these illicit machines illustrates its overarching aim to safeguard customers and maintain the integrity of the financial system.
This case represents the inaugural instance of the FCA initiating criminal charges for unlicensed cryptocurrency ATMs, in accordance with the UK’s anti-money laundering legislation established in 2017.
The FCA has been collaborating with law enforcement agencies throughout the UK to identify and dismantle illicit crypto ATMs. This initiative is part of a larger effort to regulate the cryptocurrency industry, ensuring its alignment with conventional financial systems.
Osunkoya is set to appear at Westminster Magistrates’ Court on September 30, where the charges against him will be officially presented. If found guilty, he may encounter significant sanctions, included monetary penalties and incarceration.
This case is anticipated to provide a precedent for the management of future cases concerning unlawful crypto ATMs in the UK, as regulators strive to guarantee the expanding crypto market is secure and adheres to legal standards.
