The UK’s Financial Conduct Authority (FCA) initiated its first-ever legal proceedings against operators of illegal cryptocurrency ATMs.
On 10 September 2024, the FCA said in a statement, that Olumide Osunkoya, 45, of London, was running multiple ATMs unlawfully and without FCA registration.
Cryptocurrency ATMs have become increasingly popular. Users can insert cash to purchase cryptocurrencies or sell them for cash, making these ATMs a bridge between digital and fiat currencies.
UK’s First Crypto ATM Takedown: FCA Tightens the Noose
The FCA just charged Olumide Osunkoya for running unregistered crypto ATMs – £2.6M funneled without a license.
This marks a first in the UK, and it’s a clear signal: regulators aren’t sleeping on the crypto ATM game… pic.twitter.com/bD4GsUutsE
— Crypto Town Hall (@Crypto_TownHall) September 11, 2024
Osunkoya Processed £2.6m In Crypto Transactions
Between 29 December 2021 and 8 September 2023, Osunkoya processed £2.6m ($3.4 million) in crypto transactions across multiple locations.
The FCA’s regulatory framework requires that any firm offering crypto services, including ATM operations, must be registered with the FCA and comply with AML regulations. Despite these requirements, many operators have continued to run unregistered and unregulated crypto ATMs, prompting the FCA to take action.
On 30 September 2024, Osunkoya will appear before Westminster Magistrates’ Court.
Osunkoya is being charged with two offenses—operating crypto ATMs and without FCA registration. He is also being charged with offenses under the Forgery and Counterfeiting Act 1981 relating to false documents created and used.
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“There Are No Legal Crypto ATM Operators In UK” : FCA
Commenting on the legal proceedings, Therese Chambers, joint executive director of enforcement and market oversight at the FCA said, ”Our message today is clear. If you’re illegally operating a crypto ATM, we will stop you.”
‘If you’re using a crypto ATM, you are handing your money directly to criminals,” Chambers added. “Criminals can exploit crypto ATMs to launder money globally.”
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
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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