London Man Faces FCA Charges for Running Illegal Crypto ATMs, Handling Millions in Transactions

• The FCA charged Olumide Osunkoya, a London man, for operating unregistered crypto ATMs, marking the U.K.’s first criminal case of its kind.
• Osunkoya’s illegal network processed £2.6 million ($3.4 million) in crypto transactions between December 2021 and September 2023.
• The FCA emphasized the risks of illegal crypto ATMs, urging consumers to avoid using them due to potential links to criminal activities.

The U.K.’s Financial Conduct Authority (FCA) has charged a London man, Olumide Osunkoya, for unlawfully operating crypto ATMs without the required registration. This significant development marks the regulator’s first criminal prosecution related to unregistered crypto activity in the country.

The FCA announced the charges on September 10, highlighting that Osunkoya allegedly managed multiple crypto ATMs across various locations. These machines processed £2.6 million ($3.4 million) in transactions between December 2021 and September 2023, all without proper authorization.

First Criminal Case for Illegal Crypto ATMs

According to the FCA, this case is the first of its kind under the U.K.’s Money Laundering, Terrorist Financing, and Transfer of Funds Regulations 2017. The charges against Osunkoya underscore the regulator’s commitment to cracking down on illegal crypto operations, especially as the use of crypto ATMs grows globally.

The FCA has issued a strong warning to those operating or using unregistered crypto ATMs. Therese Chambers, the FCA’s joint executive director of enforcement and market oversight, stated, “Our message today is clear. If you are illegally operating a crypto ATM, we will stop you. If you are using a crypto ATM, you are handing your money directly to criminals.”

No Legal Crypto ATMs Operating in the U.K.

Crypto ATMs enable users to convert cash into cryptocurrencies, but their operation in the U.K. requires FCA oversight and approval. Osunkoya’s actions, however, bypassed these regulations, leading to his prosecution. The FCA has been increasingly active in targeting illegal crypto ATMs, collaborating with law enforcement agencies to curb such activities.

The FCA stressed that no crypto ATMs are legally operating in the U.K., warning consumers about the risks associated with using these machines. The authority continues to caution the public about the high risks involved in crypto transactions, including the potential loss of all invested funds.

General Trends for Crypto ATM Market

Worldwide, the Bitcoin ATM has expanded tremendously, and the market is continuing to grow boasting an average of 38,000 Bitcoin ATMs across the globe up to August, 2024. This growth, however, has been accompanied by the rise of such watchdogs as the FCA, who are worried that such machines will be used to banking black money, among other criminal activities.