The UK’s Financial Conduct Authority (FCA) has charged a London-based man, Olumide Osunkoya, for operating an illegal network of cryptocurrency ATMs.
The UK’s watchdog, Financial Conduct Authority (FCA), announced on Tuesday, September 10, in an X post that it has charged a 45-year-old, London-based man, Olumide Osunkoya, for unlawfully operating an illegal network of multiple cryptocurrency ATMs without registration.
FCA Charged London-based Olumide Osunkoya For Running A £2.6M Network Of Crypto ATMs Without Registration
For context, cryptocurrency ATMs are similar to traditional ATMs but only allow users to purchase or sell crypto assets.
The FCA further released an official statement stating that the crypto ATMs have been in operation across multiple locations in the UK from December 29, 2021, to September 8, 2023.
The watchdog added that the crypto ATMs have processed several transactions, which are worth £2.6M (~$3.4M).
According to the FCA, this is the watchdog’s first charge against an individual accused of operating a network of cryptocurrency ATMs in the UK.
Also, it is the first criminal prosecution linked to unregistered crypto asset activity under the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017 (MLRs).
The statement revealed that the defendant, Mr Olumide Osunkoya, must appear before Westminster Magistrates’ Court on September 30.
Financial Conduct Authority (FCA) Warned Against Crypto ATMs
The Financial Conduct Authority warned citizens earlier that cryptocurrency ATMs could be used for money laundering.
Currently, no cryptocurrency ATM operator has registered with the FCA since February 27. This means no new approval over the past six months.
Also, since the watchdog began overseeing anti-terrorist financing and anti-money laundering in January 2020, it has rejected about 86% of all the applications submitted by crypto-related firms for authorization.
The UK’s FCA is not the only body that is against the use of crypto ATMs for fraudulent activities.
According to our recent report, the US’s law enforcement authorities have also shut down about 411 crypto ATMs due to scams and extortions.
Other Charges Against Olumide Osunkoya
The statement revealed that there are other charges against Olumide. Olumide is faced with two charges under the Money Laundering Regulations for running illegal cryptocurrency ATMs without registering with the FCA.
He is also faced with two charges under the Forgery and Counterfeiting Act 1981 for forging documents. Olumide is charged under the Proceeds of Crime Act 2002 with having criminal property in his possession.
After Olumide’s court appearance on September 30, the outcome will definitely act as a deterrent to others running crypto ATMs or other crypto-related businesses without proper registration with the FCA.
