Olumide Osunkoya, a 45-year-old London resident, has been charged by the UK Authority for running an unlicensed network of cryptocurrency ATMs.
On September 10, the Financial Conduct Authority (FCA) of Britain declared that it had filed charges against 45-year-old London resident Olumide Osunkoya for operating cryptocurrency ATMs without authorization. This is the first time that operating these machines without FCA registration has resulted in legal action against an individual.
The charges come as part of the FCA’s efforts to combat illegal crypto ATMs across the UK, working closely with law enforcement agencies. These machines, which allow users to buy or convert money into crypto assets, have been linked to criminal activity such as money laundering and terrorist financing.
UK FCA Cracks Down: London Man Faces Charges for Illegally Operating Crypto ATMs
Osunkoya is charged with overseeing cryptocurrency ATMs and handling transactions totaling £2.6 million ($3.4 million) between December 2021 and September 2023.
In a statement, the FCA stressed the dangers of operating illicit cryptocurrency ATMs and mentioned how money can be laundered internationally by thieves using these devices.
Osunkoya is charged under the Forgery and Counterfeiting Act 1981 for fabricating documents during his operations, in addition to two charges under MLRs. He is also charged under the Proceeds of Crime Act 2002 with possessing criminal property.
Osunkoya purportedly operated without FCA supervision while serving as a director of Gidiplus Ltd. and then as a lone practitioner.
“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,” Therese Chambers, the FCA’s joint executive director of enforcement and market oversight, warned.
Later this month, Osunkoya will appear in Westminster magistrates court to answer to charges related to money laundering, financing of terrorism, and transfer of funds laws.
The public is still being cautioned by the FCA about the significant risks involved with cryptocurrencies, which are still mostly unregulated in the UK. Anyone investing in cryptocurrency, according to the watchdog, should be ready to lose their entire investment.
With an 86% Rejection Rate, Is the UK Shutting Its Doors on Crypto?
With its hold on the cryptocurrency industry growing, the FCA shut down 26 illicit cryptocurrency ATMs in the UK last year. This action is a part of larger European initiatives to stop uncontrolled cryptocurrency activity, like the recent seizure of almost €250,000 in Germany during a crackdown on cryptocurrency ATMs.
The FCA has not approved any new cryptocurrency businesses since February 27, which is more than six months ago. Since the regulator started overseeing the crypto industry in January 2020 for anti-money laundering and counter-terrorist financing, 86% of applications have been rejected.
Habibur Rahman, 37, was arrested recently; he is the first person in the UK to be charged with running an illicit cryptocurrency ATM. Rahman is also charged with using cryptocurrency to launder $392,557 in cash.
Since none of the 44 UK-registered cryptocurrency businesses have permission to operate crypto ATMs, all of these devices are prohibited.
The FCA has stepped up its campaign against illicit cryptocurrency ATMs; in May 2023, raids in Exeter, Nottingham, and Sheffield were particularly noteworthy. The FCA had carried out 34 inspections by the end of the year.
According to TRM Labs research, since 2019, the cash-to-crypto sector has handled at least $160 million in illegal volumes, sparking international law enforcement responses.
While the market for cryptocurrency ATMs has been significantly reduced in the UK, it has increased dramatically in other places, such as Australia.
🇦🇺🚀 Australia is experiencing a crypto ATM boom, with numbers skyrocketing 16-fold in just two years to nearly 1,200 machines! 💰💳#CryptoATM #Australiahttps://t.co/ykbJoLg0Ji
— Cryptonews.com (@cryptonews) August 29, 2024
In just two years, Australia saw a 1,700% increase in cryptocurrency ATMs, accounting for 2.7% of the global total. In a recent anti-illegal cryptocurrency operation, Germany also took action, seizing €250,000 ($279,000) and 13 cryptocurrency ATMs.