The Financial Conduct Authority (FCA) in the UK has announced charges against Olumide Osunkoya, a 45-year-old London resident, for unlawfully operating crypto ATMs. This is the first time an individual has been prosecuted for running these machines without FCA registration. The charges are part of the FCA’s efforts to combat illegal crypto ATMs, which have been linked to criminal activities such as money laundering and terrorist financing. Osunkoya is accused of managing crypto ATMs and processing transactions worth £2.6 million from December 2021 to September 2023. The FCA highlighted the risks associated with illegal crypto ATMs, warning that criminals can exploit these machines to launder money globally.
In addition to charges under Money Laundering Regulations, Osunkoya also faces charges under the Forgery and Counterfeiting Act 1981 for creating false documents during his operations and a charge of possessing criminal property under the Proceeds of Crime Act 2002. The FCA’s joint executive director of enforcement and market oversight, Therese Chambers, warned that illegal operators of crypto ATMs would be stopped, as using such machines could mean handing money directly to criminals. Osunkoya is set to appear in court facing charges related to money laundering, terrorist financing, and the transfer of funds regulations. The FCA continues to alert the public about the high risks associated with cryptocurrencies, which are largely unregulated in the UK, advising investors to be prepared to lose their entire investment.
The FCA’s crackdown on illegal crypto ATMs is part of a broader effort to curb unregulated crypto activity in the UK and across Europe. Last year, the FCA disrupted 26 illegal crypto ATMs in the UK, and other European countries like Germany have also taken action against unauthorized crypto operations. Since February 27, no new crypto firms have been registered by the FCA, indicating a tightening of oversight in the sector. The regulator’s focus on anti-money laundering and counter-terrorist financing in the crypto sector has resulted in an 86% rejection rate of applications. The recent arrest of Habibur Rahman, the first person in the UK charged with operating an illegal cryptocurrency ATM, and the seizure of nearly €250,000 in a crackdown on crypto ATMs in Germany, demonstrate the seriousness of the issue.
Research by TRM Labs shows that the cash-to-crypto industry has processed at least $160 million in illicit volumes since 2019, prompting global law enforcement actions. While the UK has effectively curtailed the crypto ATM market, other regions like Australia have seen a significant increase in crypto ATM usage. Australia’s crypto ATMs have increased by 1,700% in two years, representing 2.7% of global distribution. Germany has also recently seized 13 crypto ATMs and €250,000 in an anti-illegal crypto operation. The FCA’s intensified crackdown on illegal crypto ATMs, with notable raids in various cities, demonstrates its commitment to combating illicit activities in the crypto space.
