The Financial Conduct Authority (FCA), a U.K. regulator, issued a press statement on Tuesday announcing that it has prosecuted a person for operating a network of illicit cryptocurrency ATMs.
A 45-year-old Londoner named Olumide Osunkoya has been charged with operating cryptocurrency ATMs that handled cryptocurrency transactions totaling British pounds 2.6 million ($3.4 million) at many locations between December 2021 and September 2023 without the necessary registration. The defendant’s next court date is September 30 at Westminster Magistrates’ Court.
The FCA stated,
“These are also the first charges brought against a person accused of running a network of crypto ATMs in the UK.”
We've charged Mr Olumide Osunkoya for unlawfully running multiple crypto ATMs without FCA registration. #CryptoATM #CryptoNews #FinancialRegulationhttps://t.co/eVWEvnMbUw
— Financial Conduct Authority (@TheFCA) September 10, 2024
First person charged for operating an unlicensed crypto ATM
The regulator said that Mr. Osunkoya would face charges for operating cryptocurrency ATMs without registering with the FCA, in violation of Regulations 86 and 92 of the MLRs. The regulator further stated that Mr. Osunkoya would face charges under the Forgery and Counterfeiting Act 1981 for fabricating and using fraudulent papers for illicit purposes.
The FCA confirmed that Mr. Osunkoya will face charges under the Proceeds of Crime Act 2002 for possession of illicit property in connection with the purported earnings from his network of cryptocurrency ATMs.
The FCA claims that Mr. Osunkoya was the first person to face charges for operating an unlicensed cryptocurrency ATM network. On April 28, 2023, the Kent Police detained Habibur Rahman, a 37-year-old Londoner, and charged him with operating a single unregistered cryptocurrency ATM.
The U.K. regulator also noted that there were no FCA-registered crypto ATMs in the country. As a result, it cautioned that individuals buying or selling crypto assets through crypto ATMs should be ready to lose all of their money because these transactions are high-risk and the ATMs are still primarily unregistered.
Crackdown on illegal crypto ATMs
The FCA has stepped up its campaign against illicit cryptocurrency ATMs. In May 2023, raids in Exeter, Nottingham, and Sheffield were particularly noteworthy. Before the end of the year, the FCA had carried out 34 inspections.
The FCA closed 26 cryptocurrency ATMs in the UK in July of last year after a thorough examination of unlicensed devices using the nation’s infrastructure. The watchdog shut down ATMs in London, Nottingham, Exeter, Sheffield, and Leeds. In their formal statement, the FCA mentions a case brought to their attention by the Citizens Advice Bureau, an impartial group that helps individuals with a range of problems.
The FCA has issued many warnings against using cryptocurrency ATMs throughout the years. Nonetheless, laws differ between nations. While the UK has successfully curbed the crypto ATM sector, other nations, including Australia, have experienced a significant increase. Australia now has 2,7% of the world’s cryptocurrency ATMs, having grown by 1,700% in only two years. In a recent anti-illegal cryptocurrency operation, Germany also took action, seizing €250,000 ($279,000) and 13 cryptocurrency ATMs.
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