UK FCA Charges First Individual over Illegal Crypto ATM Network Britain’s Financial Conduct Authority has charged a 45-year-old man from London by the name Olumide Osunkoya over illegal operation of crypto-currency automated teller machines. This is the very first prosecution in the UK for operating these machines without the necessary registration with the FCA.
The charges have been brought amid the FCA’s continued effort to crack down on crypto ATMs operating outside the law and allegedly serving as a conduit for major financial crimes, including money laundering and terrorist financing.
First-of-Its-Kind Prosecution
The FCA charged Osunkoya with running crypto-cash machines and processing an estimated £2.6m ($3.4m) in transactions between December 2021 and September this year. Such machines allow money to be converted into cryptocurrency, which may then be used in a host of crimes.
He was charged with several counts, including breaches of the MLRs and forgery. He is also being charged under the Proceeds of Crime Act 2002 for having criminal property.
FCA Issues Warning Over Crypto Machines Being Installed Illegally
The FCA has issued stern warnings to those involved in the illicit operation of crypto-ATMs. According to Therese Chambers, FCA’s joint executive director of Enforcement and Market Oversight: “If you’re operating a crypto ATM illegally, we’ll take action to stop you. And if you’re using a crypto ATM, you’re handing money directly to organized crime”ю
Operating under the firm Gidiplus Ltd initially, Osunkoya is scheduled to appear at Westminster Magistrates’ Court later this month.
High Rejection Rate of Crypto Firms in the UK
The FCA has lately increased pressure on the cryptocurrency industry. The UK has taken a tough stance on cryptocurrency regulation, rejecting 86% of new crypto firm applications. Since February 27, no new crypto firms have been registered, a testament to the regulator’s strict watch.
This means that none of the 44 crypto companies in the UK are authorized to operate ATMs, making all crypto ATMs currently in operation technically illegal.
Raids and Crackdowns on Illegal Crypto ATMs
In an effort to crack down, FCA has been actively raiding sites hosting illegal crypto ATMs. Just this past May 2023 alone, FCA raided locations in Exeter, Nottingham, and Sheffield. Last year it disrupted 26 illegal crypto ATMs across the UK.
The number of international efforts to clip illegal crypto ATM activity also continuously grows. For example, in Germany, the country has seized 13 ATMs and €250,000 ($279,000) in a major operation against illicit crypto activities.
Global Rise of Illegal Crypto ATM Activity
Although the UK has only tightened its noose around the crypto ATM market, operations in other jurisdictions surge. Crypto ATMs in Australia have, for instance, risen by 1,700% in the last two years and now account for 2.7% of the total global supply.
While law enforcement agencies are increasingly hostile toward crypto activity in many countries, it’s anyone’s guess as to what their efforts portend regarding the future of cryptocurrency regulation.
