The UK’s financial regulator has charged an individual for the first time over allegations that he operated an illegal crypto ATM network. The Financial Conduct Authority (FCA) announced that Olumide Osunkoya, 45, was charged over his operation of a crypto ATM network, which reportedly processed millions of pounds worth of digital assets.
Illegal ATM Network Processed Millions
Osunkoya reportedly operated the ATMs without the required FCA registration between December 29, 2021 and September 8, 2023. During that period, the machines processed £2.6 million worth of transactions. A Prize Pool Worth 21 Million TL Awaits You from BinanceTR! Participating and winning has never been easier.. You can sign up to BinanceTR from this link. Get your first crypto!
This allegation contravenes the Money Laundering, Financing of Terrorism and Transfer of Funds (Payer Information) Regulations (MLRs) 2017. There are currently no legal crypto ATM operators in the UK.
“Our message today is clear. If you operate a crypto ATM illegally, we will stop you. If you operate a crypto ATM, you are handing your money directly to criminals. Criminals can use crypto ATMs to launder money globally.” – Therese Chambers, Joint Director of Enforcement and Market Oversight, FCA
Closing of Crypto ATMs
Last April, a search of a shop in Kent, England, found several crypto ATMs, one of which was on public display. Police charged Habibur Rahman, 37, with operating the machine without an FCA registration and converting £300,000 worth of criminal funds into crypto. It was the first time a person had been charged with operating a single ATM without an FCA registration.
In July last year, the FCA closed 26 crypto ATMs in the UK. This was part of a wider investigation targeting unauthorised machines in the country. The FCA closed ATMs in London, Nottingham, Exeter, Sheffield and Leeds. According to the FCA’s official statement, a person who deposited £1,000 into a crypto ATM in Sheffield was unable to receive crypto and their money back. Unfortunately, the staff at the shop were of little help.
Over time, the FCA has repeatedly warned about the use of crypto ATMs. However, regulations vary across countries. For example, crypto ATM operator Bitcoin, according to an April filing with the United States Securities and Exchange Commission (SEC), $56,980.12 Depot reported $689 million in revenue for fiscal 2023, a 7% increase from the previous year. The company said it plans to add 8,000 kiosks to its network by the end of the year.
The move comes as part of the FCA’s crackdown on illegal crypto ATM networks. The FCA’s previous warnings and shutdowns have demonstrated its commitment to regulating crypto ATMs. This development highlights the need for crypto ATMs to be operated in compliance with the law.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
