The UK’s Financial Conduct Authority (FCA) has taken unprecedented action against an individual accused of running an illegal network of cryptocurrency ATMs. As the market watchdog emphasizes, this is its first set of charges involving physical machines that allow for the buying and selling of digital assets.

At the same time, the FCA reminds that “there are no legal crypto ATM operators in the UK.” Any such machines operate illegally, and those using them indirectly contribute to the global money laundering scheme.

Illegal Crypto ATM Network

Olumide Osunkoya, a 45-year-old London resident, faces charges for allegedly operating multiple crypto ATMs without FCA registration. These kiosks, which allow users to buy or convert money into cryptocurrencies, processed transactions totaling £2.6 million across various locations between December 2021 and September 2023.

This case represents the FCA’s first criminal prosecution related to unregistered cryptoasset activity under the Money Laundering Regulations of 2017. It also sets a precedent as the first charges brought against an individual for operating a network of crypto ATMs in the UK.

“Our message today is clear. If you’re illegally operating a crypto ATM, we will stop you,” Therese Chambers, joint executive director of enforcement and market oversight at the FCA, commented. “If you’re using a crypto ATM, you are handing your money directly to criminals.”

The charges against Osunkoya include two offenses under the Money Laundering Regulations for operating crypto ATMs without FCA registration, two offenses under the Forgery and Counterfeiting Act 1981 for allegedly creating and using false documents, and an offense of possessing criminal property under the Proceeds of Crime Act 2002.

Osunkoya is scheduled to appear before Westminster Magistrates’ Court on September 30, 2024. The outcome of this case could have significant implications for the regulation of cryptocurrency services in the UK and may serve as a deterrent to others operating in this space without proper authorization.

This legal action follows a recent FCA operation conducted in partnership with law enforcement agencies to tackle illegally operated crypto ATMs across the country. In 2023, the FCA inspected 34 locations suspected of hosting such machines, resulting in the disruption of 26 unlawfully operating ATMs.