Olumide Osunkoya, the first person in the UK to be charged for running illegal crypto ATMs, pleaded guilty to five crimes, including fraud and money laundering, on September 30, 2024.
He ran a group of 11 unregistered crypto ATMs, handling over £2.6 million in transactions from December 2021 to September 2023 without permission from the Financial Conduct Authority (FCA).
Despite being denied registration by the FCA in 2021, Osunkoya continued to expand his ATM network in convenience stores across the UK. He neglected to verify the source of the money or the users of the machines, facilitating potential money laundering activities.
Additionally, he created false documents and used a fake name, falsely claiming to have sold his ATM network to a nonexistent individual.
Osunkoya could face up to two years in prison for operating without FCA approval, up to ten years for forgery, and up to fourteen years for possessing illegal money from his ATM business. His sentence will be determined at Southwark Crown Court.
Crypto in the UK
The UK is developing new cryptocurrency regulations. While cryptocurrency is legal, it is not considered official currency, prompting the government to establish clearer regulatory guidelines.
Currently, cryptocurrencies are governed by existing financial laws. The Financial Conduct Authority (FCA) oversees compliance with money-laundering laws and mandates company registration with the government.
In February 2023, the government announced plans for comprehensive regulations aimed at fostering innovation while protecting consumers and ensuring market safety. This may include classifying some cryptocurrencies as investments under current laws.
As of October 2023, companies promoting cryptocurrencies must be registered with the FCA, and their advertisements must adhere to strict guidelines to inform people of the risks associated with crypto investments.
The government is also seeking feedback on its new proposals, which could extend regulation to more crypto activities, including stablecoins.
Crypto companies must comply with stringent rules, such as knowing their customers and monitoring transactions. The FCA demands robust management and reliable systems before granting approvals.
The UK aspires to become a global leader in crypto technology but faces competition from other regions, such as the EU, where regulations are also evolving.
Olumide Osunkoya, a 45-year-old man from London, is the first individual to face such charges in the UK. The FCA has stated that there are currently no legally registered crypto ATMs in the country. Using these unregistered machines poses risks, as they can be exploited by criminals for money laundering.
