The UK's Financial Conduct Authority (FCA) has charged a man with unlawfully operating a network of cryptocurrency ATMs without proper registration. This marks the regulator's first criminal prosecution for activities involving physical crypto machines.

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On their official X handle, the agency posted an update that read, “We've charged Mr Olumide Osunkoya for unlawfully running multiple crypto ATMs without FCA registration. #CryptoATM #CryptoNews #FinancialRegulation.” As expected, the news was met with mixed reactions from the public, judging from the comments under a similar tweet by @Crypto Tea. 

Mind you, this isn’t the FCA’s first time with illegal crypto ATMs across the UK. Last year, the regulator worked with law enforcement in the UK to shut down 26 machines last year. However, this recent lawsuit further reiterates their tough stance against unregulated digital asset transactions.

Here are some of the key points:

  • The FCA has charged Olumide Osunkoya for unlawfully operating unregistered cryptocurrency ATMs in London, processing £2.6 million in transactions.
  • This marks the FCA's first criminal prosecution related to illegal crypto ATM operations under the Money Laundering Regulations.
  • The charges include violations of the Money Laundering Regulations, Forgery and Counterfeiting Act, and Proceeds of Crime Act.
  • Therese Chambers of the FCA warned that illegal crypto ATMs can facilitate money laundering and pose risks to users.
  • The FCA's crackdown follows inspections that led to the shutdown of 26 illegal crypto ATMs across the UK in 2023.

As highlighted in a press release by the FCA on September 10, Olumide Osunkoya, 45, a London resident, faces charges for running multiple unregistered crypto ATMs. The regulator also disclosed in their report that these illegal ATMs have processed £2.6 million worth of transactions between December 2021 and September 2023. Official charges against Mr Olumide include offenses under the Money Laundering Regulations of 2017, the Forgery and Counterfeiting Act 1981, and the Proceeds of Crime Act 2002.

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.

Those were the words of Therese Chambers, the Joint Executive Director of Enforcement and Market Oversight at the FCA, following the announcement of the charges. 

Notably, this criminal case comes on the heels of an FCA-led operation to disrupt illegal crypto ATM operations across the UK. In collaboration with law enforcement agencies, the FCA inspected 34 locations suspected of hosting illegal crypto machines in 2023, successfully shutting down 26 of them.

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The FCA's aggressive stance against unregistered crypto ATMs signals that the regulator is committed to cracking down on illegal activities linked to digital assets. Many crypto enthusiasts are of the opinion that FCA's actions may set a precedent for stricter enforcement and regulation in the UK and beyond.

For now, we can only look forward to the outcome of the FCA's case against Osunkoya.

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