A man in the UK, Olumide Osunkoya, has admitted to charges related to the unlawful operation of cryptocurrency ATMs, making him the first individual convicted for such offenses in the country, according to a report by James Hunt for The Block.
The press release by the Financial Conduct Authority (FCA), which is the UK’s main financial regulator, revealed that Osunkoya was running at least 11 crypto ATMs across the UK without proper registration between December 2021 and September 2023.
These ATMs processed over £2.6 million ($3.5 million), generating profits of up to 60% per transaction. Despite being denied registration by the FCA in 2021, Osunkoya expanded his ATM network, placing them in local shops. He also failed to conduct customer verification, raising concerns that the machines were used for money laundering and tax evasion.
The court heard that Osunkoya used a false identity to bypass regulatory scrutiny. He has been charged with operating the ATMs without FCA approval, which could lead to a prison term of up to two years. Additional charges include forgery, counterfeiting, and possession of criminal property, for which he could face up to 14 years in prison.
Osunkoya’s case marks a significant moment in the FCA’s efforts to clamp down on illegal crypto operations in the UK. Therese Chambers, the FCA’s joint executive director of enforcement, warned on September 10 that using unlicensed crypto ATMs puts users at risk of dealing with criminal enterprises. She also reiterated that cryptocurrencies remain unregulated in the UK and carry significant financial risks for investors.
The FCA press release also pointed out that there are currently no legal crypto ATM operators in the UK.
The sentencing will be held at Southwark Crown Court, with a date to be determined.
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