Olumide Osunkoya, a 45-year-old Londoner, is in trouble with the law for allegedly running illegal crypto ATMs. These machines processed a significant amount of money—£2.6 million ($3.4 million) in cryptocurrency—across different locations. This case marks the first time someone has been charged in the UK for operating such illegal crypto machines.
UK Regulator Files First Charges Against Person for Operating Illegal Crypto ATMs
The UK’s Financial Conduct Authority (FCA) has charged an individual for managing an illicit network of crypto ATMs, according to a press release issued on Tuesday. Olumide Osunkoya, a 45-year-old London resident, is alleged to have operated crypto ATMs that handled £2.6 million ($3.4 million) in transactions from December 2021 to September 2023 without the required registration. Osunkoya is set to appear before Westminster Magistrates’ Court on September 30.
This case represents the first time someone has been charged for running multiple illegal crypto ATMs in the UK, as stated by the FCA. The announcement follows the recent arrest of Habibur Rahman, a 37-year-old Londoner who was the first individual charged with operating a single illegal crypto ATM and allegedly converting $392,557 into cryptocurrency.
None of the 44 crypto firms currently registered in the UK have the authorization to operate crypto ATMs, rendering all such machines illegal. The FCA has been actively targeting illegal crypto ATMs, conducting raids in Exeter, Nottingham, and Sheffield last May and performing a total of 34 inspections by the end of 2023.
“We are sending a clear message: if you are running an illegal crypto ATM, we will intervene,” said Therese Chambers, joint executive director of enforcement and market oversight at the FCA.
Implications of FCA’s Crackdown on Illegal Crypto ATMs
The FCA’s charge against Olumide Osunkoya for operating an illegal network of crypto ATMs signifies a major enforcement milestone in the UK’s regulatory approach to cryptocurrency operations. This development highlights the FCA’s increased vigilance and commitment to cracking down on unregistered and non-compliant crypto activities.
By targeting such networks, the FCA aims to curb illegal financial transactions and prevent potential abuses associated with unauthorized crypto ATMs, which could facilitate money laundering and other illicit activities.
The impact of this charge is likely to be twofold. Firstly, it serves as a clear warning to other operators of illegal crypto ATMs, potentially deterring them from similar activities due to the heightened risk of legal consequences.
This could lead to a decrease in the number of unregistered crypto machines operating across the UK. Secondly, it underscores the need for regulatory compliance within the crypto sector, potentially prompting legitimate businesses to reassess their practices and ensure they meet all legal requirements.
As the FCA continues its crackdown, we may see more stringent regulations and enforcement actions, which could further shape the landscape of crypto operations in the UK. This could ultimately foster a more secure and transparent market environment but might also pose challenges for new entrants and existing players navigating the regulatory framework.
Source: https://cryptoticker.io/en/uk-charges-illegal-crypto-atms