- Illegal ATM Network Processes Millions
- Shutting Down Crypto ATMs
- FCA Measures to Combat Illegal Networks
The UK’s Financial Conduct Authority (FCA) has charged an individual for the first time for operating an illegal crypto ATM network. 45-year-old Olumide Osunkoya has been charged for operating a crypto ATM network, conducting transactions worth millions of pounds in digital assets.
Illegal ATM Network Processes Millions
Osunkoya reportedly operated the ATMs without the necessary FCA registration between December 29, 2021, and September 8, 2023. During this period, the machines processed transactions worth £2.6 million. This charge constitutes a violation of the 2017 Money Laundering, Terrorist Financing, and Transfer of Funds (Information on the Payer) Regulations. Currently, there is no legal crypto ATM operator in the United Kingdom.
Shutting Down Crypto ATMs
Last April, several crypto ATMs were found during a raid at a shop in Kent, England. Police charged 37-year-old Habibur Rahman with operating the machine without FCA registration and converting £300,000 worth of criminal funds into crypto. This was the first incident where an individual was charged for operating a single ATM without FCA registration. Last July, the FCA shut down 26 crypto ATMs in the United Kingdom as part of a broader investigation targeting unauthorized machines. The FCA closed ATMs in London, Nottingham, Exeter, Sheffield, and Leeds.
FCA Measures to Combat Illegal Networks
Over time, the FCA has repeatedly issued warnings about the use of crypto ATMs. Regulations vary between countries. For example, according to an April filing with the U.S. Securities and Exchange Commission (SEC), crypto ATM operator Bitcoin Depot generated $689 million in revenue for the 2023 fiscal year, a 7% increase from the previous year. The company stated it plans to add 8,000 kiosks to its network by the end of the year. The FCA’s actions are seen as part of its efforts to combat illegal crypto ATM networks and underscore the necessity for ATMs to comply with legal regulations.
The UK’s financial regulator aims to ensure compliance with laws and regulations regarding crypto ATMs. These efforts demonstrate the FCA's determination to tackle illegal operations and ensure the safety of financial transactions in the country.
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