UK Crypto ATM Network Faces Legal Action
First Criminal Charges for Operating Crypto ATMs in the UK
The Financial Conduct Authority (FCA) of the United Kingdom has taken legal action against Olumide Osunkoya, the head of Gidiplus Limited, for running an unauthorized network of cryptocurrency ATMs. This marks the first instance in the UK where an individual has been charged for such an offense.
Violations and Charges
Osunkoya’s network reportedly processed transactions worth 2.6 million British pounds (approximately $3.4 million) between December 2021 and September 2023. The FCA has accused him of two violations of the Money Laundering Regulations 2017 (MLRs), specifically related to the prevention of money laundering and terrorist financing. Additionally, Osunkoya faces charges under the Forgery and Counterfeiting Act 1981 for creating and using false documents, and one count of possessing criminal property under the Proceeds of Crime Act 2002.
Court Appearance and Statements
Osunkoya is scheduled to appear in court on September 30. Therese Chambers, FCA’s joint executive director of enforcement and market oversight, 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.”
Previous Incidents and Broader Context
This is not the first time the FCA has taken action against illegal crypto ATMs. In April 2023, Habibur Rahman was arrested for operating a single unregistered crypto ATM and laundering 300,000 pounds ($392,000) in criminal proceeds. Rahman is free on bail and is expected to appear in court on October 10.
Gidiplus Limited and Regulatory Challenges
Osunkoya is the director of Gidiplus Limited, a company specializing in crypto ATM services. The company applied to become a registered crypto asset exchange provider in November 2021 but was denied registration. An appeal to this decision was also unsuccessful, leading to the current legal challenges.
No Legal Crypto ATMs in the UK
As of now, there are no legally operated crypto ATMs in the United Kingdom. In March 2022, the FCA ordered the shutdown of all unregistered crypto ATMs, effectively eliminating legal crypto ATM operations in the country. The FCA has been actively targeting illegal ATMs since February 2023, and these efforts have continued throughout the year.
Conclusion
The FCA’s actions against unauthorized crypto ATMs underline the importance of regulatory compliance in the cryptocurrency industry. The case against Osunkoya serves as a warning to others operating outside the legal framework, emphasizing that non-compliance will be met with stringent legal consequences.
