In a groundbreaking move, the Financial Conduct Authority (FCA) has brought charges against Mr. Olumide Osunkoya, a 45-year-old London resident, for allegedly operating a network of illegal cryptocurrency ATMs across the United Kingdom. This marks the first criminal prosecution by the FCA related to unregistered cryptoasset activity under the Money Laundering Regulations of 2017.
Osunkoya stands accused of running multiple crypto ATMs without the required FCA registration. These machines, which allow users to buy or convert money into cryptoassets, reportedly processed £2.6 million in transactions between December 2021 and September 2023.
The defendant faces multiple charges, including:
- Two offences under the Money Laundering Regulations
- Two offences under the Forgery and Counterfeiting Act 1981
- One offence of possession of criminal property under the Proceeds of Crime Act 2002
Therese Chambers, joint executive director of enforcement and market oversight at the FCA, emphasized the authority’s commitment to cracking down on illegal crypto ATM operations. “Our message today is clear. If you’re illegally operating a crypto ATM, we will stop you,” Chambers stated.
The FCA has also issued a stark warning to the public, cautioning that using these unregistered crypto ATMs is equivalent to “handing your money directly to criminals”.
Broader Implications
This case is part of a larger crackdown on illegal crypto ATMs in the UK. In 2023, the FCA inspected 34 locations suspected of hosting such machines, resulting in the disruption of 26 unlawfully operating ATMs.
It’s worth noting that currently, there are no legal crypto ATM operators in the UK. The FCA continues to warn consumers about the high risks associated with cryptoassets, which remain largely unregulated in the country.
Osunkoya is scheduled to appear before Westminster Magistrates’ Court on September 30, 2024. The outcome of this case could set a significant precedent for future enforcement actions against illegal crypto operations in the UK.
As the cryptoasset landscape continues to evolve, this case underscores the growing focus of financial regulators on ensuring compliance and protecting consumers in the rapidly changing world of digital currencies.
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