FCA Files First Criminal Charges Over Unregistered Crypto ATMs
In a landmark move, the Financial Conduct Authority (FCA) has initiated its first criminal proceedings against an individual accused of unlawfully operating multiple cryptocurrency ATMs without proper registration. The case marks a significant step in the UK regulator’s ongoing crackCryptodown on illegal crypto activities.
The Accused: Olumide Osunkoya
The individual at the center of this case is 45-year-old Olumide Osunkoya, a London resident. Osunkoya is alleged to have run several crypto ATMs across various locations in the UK between December 29, 2021, and September 8, 2023. During this period, the machines reportedly processed a staggering £2.6 million in cryptocurrency transactions. Despite the substantial volume of business, Osunkoya did not obtain the necessary FCA registration, making his operations illegal under UK law.
The FCA’s Crackdown on Crypto ATMs
The FCA’s actions against Osunkoya are part of a broader initiative to eliminate unregistered crypto ATMs across the country. Last year, the regulator, in collaboration with law enforcement agencies, shut down 26 such machines. In response to an earlier directive from the FCA, all crypto ATMs in the UK were closed due to the lack of legal operators. At that time, around 100 machines operated nationwide, allowing users to exchange cash for crypto assets without oversight.
A Clear Message from the FCA
Therese Chambers, Joint Executive Director of Enforcement and Market Oversight at the FCA, delivered a strong warning to both operators and users of illegal crypto ATMs. “Our message today is clear. If you’re illegally operating a crypto ATM, we will stop you,” Chambers stated emphatically. She went on to caution the public against using these machines, highlighting their association with criminal activities. “If you’re using a crypto ATM, you are handing your money directly to criminals. Criminals can exploit crypto ATMs to launder money globally,” she added.
Legal Proceedings to Follow
Olumide Osunkoya is scheduled to appear before Westminster Magistrates’ Court on September 30, 2024. The case is expected to set a precedent for how the UK handles illegal crypto ATM operations and could lead to further enforcement actions against other unregistered operators.
Conclusion: A Stern Warning to the Crypto Community
The FCA’s pursuit of criminal charges in this case underscores the regulator’s commitment to clamping down on unlawful cryptocurrency activities. With the rise of digital currencies, the FCA is taking decisive steps to ensure that the industry operates within the legal framework. As this case progresses, it will serve as a stern warning to others in the crypto space: operate legally, or face the consequences.