The Financial Conduct Authority (FCA), the regulatory body for financial services in the United Kingdom, has taken a significant step in cracking down on illegal cryptocurrency operations. In a press release issued on Tuesday, the FCA announced that it has charged Olumide Osunkoya, a 45-year-old resident of London, for allegedly running a network of illegal crypto ATMs across various locations in the U.K.
According to the FCA, Osunkoya’s operations included crypto ATMs that processed a staggering £2.6 million (approximately $3.4 million) in cryptocurrency transactions between December 2021 and September 2023. The key issue at hand is that these transactions were conducted without the necessary regulatory registration, making them illegal. The defendant is scheduled to appear before the Westminster Magistrates’ Court on September 30.
This case marks a historic moment as it represents the first charges brought against an individual for operating a network of crypto ATMs in the U.K. The FCA emphasized the seriousness of the matter, highlighting the regulatory framework that requires all cryptocurrency services to be registered and compliant with existing laws.
The charges against Osunkoya follow a prior case involving Habibur Rahman, a 37-year-old Londoner who was arrested last month for operating a single illegal cryptocurrency ATM. Rahman allegedly laundered approximately $392,557 in cash by converting it into cryptocurrency, further demonstrating the potential for illicit activities surrounding unregulated crypto operations. This highlights the ongoing concerns regarding money laundering and the need for strict oversight in the cryptocurrency sector.
Currently, none of the 44 crypto companies that have registered with the FCA possess the necessary authorization to operate crypto ATMs, rendering all such machines in the U.K. illegal. The FCA has been actively enforcing regulations in this area, conducting numerous inspections and raids to dismantle illegal operations. In May of the previous year, the FCA, in collaboration with local police, executed coordinated raids across various cities, including Exeter, Nottingham, and Sheffield, as part of its commitment to enforcing compliance within the cryptocurrency space.
As of the end of 2023, the FCA reported that it had conducted a total of 34 inspections related to illegal crypto ATMs, underscoring its dedication to ensuring consumer protection and maintaining the integrity of the financial system. Therese Chambers, the joint executive director of enforcement and market oversight at the FCA, issued a clear warning in the press release, stating, “Our message today is clear. If you’re illegally operating a crypto ATM, we will stop you.” This statement serves as a stern reminder to those involved in unauthorized crypto operations that regulatory authorities are vigilant and prepared to take action against violators.
The ongoing crackdown on illegal crypto ATMs reflects a broader trend within the financial regulatory landscape, where authorities are increasingly recognizing the need for enhanced oversight of digital currencies. As cryptocurrencies continue to gain popularity, the importance of regulatory compliance becomes paramount to prevent illicit activities and protect consumers from potential scams and fraud.
As the cryptocurrency market continues to evolve, the FCA’s actions serve as a crucial reminder to both consumers and operators about the importance of adhering to regulatory standards. The future of cryptocurrency in the U.K. hinges on the ability of regulatory bodies to effectively monitor and regulate this burgeoning industry while fostering innovation and protecting the interests of all stakeholders involved.
