Illegal Crypto ATMs in the UK: Landmark Conviction for Operating Unregulated Cryptocurrency Machines

• In a landmark ruling, Olumide Osunkoya admitted guilt to five offenses related to the unlicensed operation of crypto ATMs in the UK.
• This case marks the first instance of such a conviction in the UK, as confirmed by the Financial Conduct Authority (FCA).
• Osunkoya managed at least 11 crypto ATMs, processing transactions amounting to over £2.6 million ($3.5 million).

This article provides details of the first UK conviction involving illegal crypto ATMs, shedding light on regulatory measures and the significance of compliance in the crypto space.

Historic Conviction for Illegal Crypto ATM Operations

In a significant development, Olumide Osunkoya has admitted to running unlicensed crypto ATMs across the UK, resulting in the first conviction of its kind in the country. The convicted offenses encompass operations conducted between December 2021 and September 2023, during which Osunkoya facilitated transactions totaling more than $3.5 million.

Background and Operational Details

Initially functioning under Gidiplus Ltd and later independently, Osunkoya expanded his network of crypto ATMs in local stores despite the FCA’s denial of his registration in 2021. His operations displayed a blatant disregard for customer due diligence, raising suspicions of money laundering and tax evasion among users. During the trial, it was revealed that Osunkoya even utilized a false alias to circumvent FCA regulations.

Legal Repercussions and Charges

Osunkoya now faces serious charges, including two counts of operating without FCA approval and additional counts of forgery and possession of criminal property. The maximum penalties for these offenses range from two years to 14 years in prison, along with substantial fines.

FCA and Regulatory Stance

In light of this case, the FCA has reiterated its stance against illegal crypto activities. Therese Chambers, joint executive director of enforcement and market oversight at the FCA, emphasized the risks associated with unregulated crypto ATMs, noting that they are frequently used in global money laundering schemes. The FCA has issued strong warnings to consumers about the high risks involved in cryptocurrency investments, urging them to be cautious.

Conclusion

This landmark case underscores the increasing vigilance of regulatory bodies like the FCA in monitoring and prosecuting illegal crypto activities. Osunkoya’s conviction sends a clear message to operators about the importance of compliance and the severe consequences of neglecting regulatory requirements. As the crypto sector continues to evolve, adherence to legal standards will be crucial in fostering a secure and transparent financial environment.