UK Man Faces Charges for Running Unlicensed Crypto ATM Network
FCA Targets Unregistered Crypto ATMs
The Financial Conduct Authority (FCA) in the United Kingdom has charged Olumide Osunkoya, the head of Gidiplus Limited, for operating an unlicensed network of cryptocurrency ATMs. This marks the first time someone in the UK has been criminally charged for such an operation.
Multiple Violations and Serious Charges
The FCA revealed that Osunkoya’s ATM network facilitated cryptocurrency transactions worth 2.6 million British pounds (approximately $3.4 million) between December 29, 2021, and September 8, 2023. Osunkoya is facing two counts of violating the UK’s Money Laundering Regulations, officially named the Money Laundering, Terrorist Financing, and Transfer of Funds (Information on the Payer) Regulations 2017.
In addition to these charges, Osunkoya is also accused of two offenses under the Forgery and Counterfeiting Act 1981 for creating and using false documents. He also faces one count under the Proceeds of Crime Act 2002 for possession of criminal property.
Stringent FCA Measures on Crypto ATMs
Therese Chambers, FCA’s joint executive director of enforcement and market oversight, emphasized their commitment to stopping illegal operations. She stated, “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.”
Osunkoya is scheduled to appear in court on September 30. This case follows the arrest of another individual, Habibur Rahman, in April 2023. Rahman is charged with operating a single crypto ATM without registration and laundering 300,000 pounds ($392,000) in criminal proceeds. He is currently out on bail and will appear in court on October 10.
No Legal Crypto ATMs in the UK
Osunkoya serves as the director of Gidiplus Limited, a company specializing in crypto ATM services. Under Regulation 92 of the Money Laundering Regulations, an officer of a company can be charged for offenses committed by the company with their consent or negligence.
Gidiplus Limited applied to become a registered crypto asset exchange provider in November 2021 but was denied registration. Their appeal was also unsuccessful in the following month.
As of now, there are no legally operated crypto ATMs in the UK. In March 2022, the FCA ordered the closure of all unregistered crypto ATMs. This action effectively eliminated all legal crypto ATMs in the country.
FCA’s Continued Crackdown on Illegal Crypto ATMs
The FCA began its crackdown on illegal crypto ATMs in February 2023. These enforcement actions have continued throughout the year, underscoring the FCA’s determination to regulate the crypto sector.
In summary, the FCA’s charges against Osunkoya mark a significant step in the regulation of cryptocurrency transactions in the UK. The stringent measures and ongoing enforcement actions reflect the FCA’s commitment to combating illegal activities in the crypto space.
