The Financial Conduct Authority (FCA) has charged Mr. Olumide Osunkoya, a 45-year-old from London, for illegally operating several crypto ATMs without proper registration. Crypto ATMs are machines that allow people to buy or convert money into cryptocurrencies.
Mr. Osunkoya is accused of running these crypto ATMs, which processed £2.6 million in transactions across different locations between December 29, 2021, and September 8, 2023, without being registered with the FCA.
This case is significant as it marks the FCA’s first criminal prosecution related to unregistered cryptoasset activity under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs). It’s also the first time someone in the UK has been charged for running a network of crypto ATMs.
The FCA’s action follows a recent operation in partnership with various law enforcement agencies aimed at tackling illegal crypto ATMs across the country.
Therese Chambers, a key figure at the FCA, stated:
“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.”
Currently, there are no legally operating crypto ATMs in the UK.
Mr. Osunkoya is scheduled to appear before Westminster Magistrates’ Court on September 30, 2024.
The FCA continues to advise people that investing in cryptocurrencies can be very risky, and there’s a chance of losing all the money invested. Cryptoassets remain largely unregulated in the UK and carry high risks.
Additional Details:
Mr. Osunkoya was born on February 7, 1979.
The FCA has been supervising UK cryptoasset businesses for anti-money laundering (AML) and counter-terrorist financing (CTF) since January 10, 2020.
Firms offering cryptoasset services must register with the FCA to comply with money laundering regulations.
Mr. Osunkoya’s charges include two offences under Regulations 86 and 92 of the MLRs for running unregistered crypto ATMs, two offences under the Forgery and Counterfeiting Act 1981 for creating false documents, and an offence under the Proceeds of Crime Act 2002 for possessing suspected criminal property.
Regulation 92 of the MLRs states that if a company commits an offence, an officer of that company, such as a director, can also be held responsible if the offence was committed with their consent or due to their neglect.
On August 28, 2024, Kent Police charged another individual for running a single crypto ATM without FCA permission, marking the first charge of its kind in the UK.
In 2023, the FCA inspected 34 locations suspected of hosting illegal crypto ATMs and disrupted 26 machines operating unlawfully.
The FCA’s inspections were carried out with the help of law enforcement agencies, including the South West Regional Organised Crime Unit, Bedfordshire Police, Hertfordshire Police, and the Metropolitan Police.
The FCA has published a list of cryptoasset businesses operating without its authorization.
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