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Illegal Crypto ATMs Taken Action By UK Authorities

Key Points:

Olumide Osunkoya has been charged by the FCA for operating multiple illegal crypto ATMs.
The charges relate to ATMs that processed £2.6 million in crypto transactions between December 2021 and September 2023.

FCA accused Olumide Osunkoya of operating a number of illegal crypto ATMs in what the regulator said marked the watchdog’s first criminal prosecution in this domain.

FCA Files First Criminal Charges for Illegal Crypto ATMs

Osunkoya, 45, allegedly operated a string of cryptocurrency-dispensing London-based ATMs where £2.6 mln worth of cryptocurrency was transacted between 29 December 2021 and 8 September 2023 without any FCA registration. This is the first prosecution for illegal crypto ATM operations under money laundering.

Crypto ATMs or kiosks are machines that allow individuals to buy or convert funds into crypto assets. Regulators have seized on crypto ATMs as a money-laundering risk, but so far, none of these crypto ATM operators is registered with the FCA, which is the normal, legitimate way through.

The issue is emphasized by the FCA’s Joint Executive Director of Enforcement and Market Oversight, Therese Chambers:

“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. Criminals can exploit crypto ATMs to launder money globally.”

Osunkoya to Appear in Court Following FCA Crackdown on Illegal Crypto ATM Operators

Osunkoya is due to appear at Westminster Magistrates’ Court on 30 September 2024. The case comes amid the FCA calling for Illegal crypto ATMs to cease operations, which has seen the number of machines shut down in the country increase at a rapid rate.

The probe and ensuing charges by the FCA are part of a broader push to rein in illegal crypto ATM operations running illicitly across the UK-a coordinated effort with law enforcement agencies.

Last year, someone with the same name as Osunkoya was reported to have lost a judicial review against the FCA’s decision to refuse to grant a licence for a crypto ATM operation he co-owned.

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Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.