Originally published on: September 10, 2024
The headlines shook the UK financial scene as the Financial Conduct Authority (FCA) brought criminal charges against Olumide Osunkoya, the mastermind behind an illicit network of cryptocurrency automatic teller machines (ATMs). This landmark case marks the first instance of someone being charged in the UK for orchestrating a crypto ATM network, signaling a pivotal moment for the crypto industry.
Operating without authorization, Osunkoya’s ATM network facilitated a staggering 2.6 million British pounds ($3.4 million) worth of crypto transactions from December 29, 2021, to September 8, 2023. The FCA accuses Osunkoya of two infringements of the UK’s Money Laundering Regulations (MLRs), as well as breaching the Forgery and Counterfeiting Act 1981 and the Proceeds of Crime Act 2002.
Legal Showdown Unfolds in the Courts
Scheduled to appear in court on September 30, Osunkoya’s legal battle looms large, with the FCA’s joint executive director Therese Chambers emphasizing the gravity of the situation. While Osunkoya’s case is groundbreaking, it follows the arrest of Habibur Rahman, a single crypto ATM operator, who was taken into custody in April 2023 and charged with operating an unregistered ATM.
Rahman’s alleged involvement in laundering 300,000 pounds ($392,000) in illicit funds has shed light on the illicit activities surrounding unlicensed crypto ATMs in the UK. Both cases highlight the stringent stance taken by regulatory authorities against unlawful crypto transactions in the country.
Gidiplus Limited Entangled in Legal Woes
Osunkoya’s role as the director of Gidiplus Limited, a company specializing in crypto ATM services, further complicates the legal landscape. The refusal of Gidiplus to obtain registration as a crypto asset exchange provider in November 2021, coupled with a failed appeal the following month, underscores the challenges faced by unlicensed entities trying to legitimize their operations.
Cracking Down on Illegal Crypto ATM Activities
In a bid to uphold regulatory integrity, the FCA mandated the closure of all unregistered crypto ATMs in March 2022, effectively eradicating legal crypto ATM services in the UK. Subsequent measures undertaken by the FCA targeted illegal ATM operators, culminating in legal actions that persisted throughout the year.
The case of Osunkoya and Rahman serves as a cautionary tale for individuals and companies navigating the complex regulatory environment of the crypto industry. As the legal saga unfolds, the future of crypto ATM operations in the UK hangs in the balance, shaping the landscape for lawful crypto transactions in the region.
