UK Regulator Charges First Individual With Running a Network of Illegal Crypto ATMs

As an analyst with over two decades of experience in financial regulation and compliance, it is clear that the Financial Conduct Authority (FCA) is stepping up its game when it comes to policing the rapidly evolving crypto market. The charges brought against Olumide Osunkoya for running a network of illegal crypto ATMs in London mark a significant milestone in the U.K.’s efforts to regulate this industry.

The Financial Conduct Authority (FCA), the U.K.’s regulatory body, announced on Tuesday that they have accused an individual of operating a network of unlawful cryptocurrency automated teller machines (ATMs).

45-year-old resident of London, Olumide Osunkoya, is under investigation for operating unregistered cryptocurrency Automated Teller Machines (ATMs) that handled approximately 2.6 million British pounds (equivalent to about $3.4 million USD) in crypto transactions across multiple sites from December 2021 to September 2023. Osunkoya must now face the Westminster Magistrates’ Court on September 30 for these allegations.

The Financial Conduct Authority (FCA) stated that these are initial accusations leveled against an individual believed to operate a system of cryptocurrency Automated Teller Machines (ATMs) within the UK.

Last month’s arrest of Habibur Rahman, a 37-year-old London resident, led to the subsequent charges against him. He is the first individual in the U.K. accused of running an unlawful cryptocurrency ATM. Additionally, it is alleged that he laundered approximately $392,557 in cash by converting it into digital currency, as reported by the BBC last month.

In the United Kingdom, none of the 44 registered cryptocurrency companies possess the required permission to operate crypto Automated Teller Machines (ATMs). Consequently, every crypto ATM currently functioning within the country is considered illegal.

Over the past few years, the Financial Conduct Authority (FCA) has been actively cracking down on unlawful cryptocurrency ATMs. Last May, joint operations with the police were conducted in cities like Exeter, Nottingham, and Sheffield. By the end of 2023, the regulatory body had carried out a total of 34 inspections aimed at this issue.

Today’s communication is straightforward: Anyone found to be unlawfully managing a cryptocurrency Automated Teller Machine (ATM), should be aware that appropriate actions will be taken to bring an end to such activities, as stated by Therese Chambers, co-executive director of enforcement and market oversight at the FCA in her recent statement.