FCA takes action against unregistered crypto ATMs in the UK

The UK's Financial Conduct Authority (FCA) has taken a landmark step by filing its first charges against an individual for operating unregistered cryptocurrency ATMs.

Olumide Osunkoya has been accused of running a network of crypto ATMs in the UK that processed £2.6 million in transactions without proper registration, in violation of anti-money laundering laws.

This marks the first prosecution under UK regulations for such activities, highlighting the FCA's commitment to cracking down on illegal crypto operations.

The FCA announced on Tuesday that Osunkoya's charges fall under the Money Laundering, Terrorist Financing, and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs).

According to the FCA, Osunkoya's network of unregistered crypto ATMs operated between December 29, 2021, and September 8, 2023, facilitating millions in transactions without the required oversight and compliance.

In addition to money laundering charges, Osunkoya is facing accusations of forgery and possession of criminal property under the Forgery and Counterfeiting Act and the Proceeds of Crime Act.

These charges come as a result of a coordinated effort by the FCA and law enforcement agencies to shut down unauthorised crypto ATMs across the country.

The FCA emphasised that there are currently no legally operating crypto ATMs in the UK.

Therese Chambers, the FCA's joint executive director of enforcement, stated, “If you’re illegally operating a crypto ATM, we will stop you.”

This case sets a precedent for how the UK will handle unregistered crypto activity moving forward.

Osunkoya is set to appear in court on September 30, 2024, to face these charges.