- FCA’s First Charges Related to Crypto ATMs
- What are Crypto ATMs
- FCA's Next Steps and Court Proceedings
The UK's Financial Conduct Authority (FCA) has filed its first-ever criminal charges related to the operation of illegal crypto ATMs.
FCA’s First Charges Related to Crypto ATMs
Olumide Osunkoya, 45, allegedly operated a series of London-based crypto ATMs, through which £2.6 million worth of cryptocurrency was transacted between December 29, 2021 and September 8, 2023, without FCA registration. This marks the first time the FCA has pressed charges for illegal crypto ATM operations under anti-money laundering regulations.
What are Crypto ATMs
Crypto ATMs or kiosks are machines that allow individuals to buy or convert funds into cryptocurrency assets. Regulators view crypto ATMs as a money laundering risk, but so far, none of these crypto ATM operators are registered with the FCA, which is the standard, legitimate practice. This is emphasized by FCA’s Joint Executive Director of Enforcement and Market Oversight, Therese Chambers: “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.”
FCA's Next Steps and Court Proceedings
Osunkoya is due to appear at Westminster Magistrates' Court on September 30, 2024. The case comes amid the FCA’s intensified demand for illegal crypto ATMs to cease operations, leading to a rapid increase in the number of machines being shut down across the country. The FCA’s investigation and subsequent charges are part of a broader effort to crack down on illicit crypto ATM operations in the UK, coordinated with law enforcement agencies.
Charges against Olumide Osunkoya underline FCA's efforts to eradicate illegal crypto ATMs in the UK. Further proceedings in this case will demonstrate regulators' determination to combat financial crimes.
