The recent conviction of Olumide Osunkoya marks a significant precedent in UK law enforcement against illegal crypto ATMs.
- Osunkoya operated a network of at least 11 unauthorized ATMs, conducting over £2.6 million in transactions.
- Despite being denied registration, Osunkoya continued illegal operations, bypassing FCA regulations.
- The ATMs were suspected of facilitating money laundering and tax evasion.
- The FCA has intensified efforts, working with police to dismantle illegal crypto ATMs across the UK.
Olumide Osunkoya’s case represents a landmark in the UK legal system’s response to unauthorized crypto ATM operations. He pleaded guilty in Westminster Magistrates Court, marking the first UK conviction of this nature. The court found him guilty of operating a series of at least 11 illegal crypto ATMs that processed more than £2.6 million from December 2021 to September 2023.
Under UK law, entities facilitating the buying and selling of cryptoassets must register with the Financial Conduct Authority (FCA). Despite this requirement, Osunkoya proceeded without the necessary registration, a defiance made more egregious by his 2021 registration denial. Disregarding regulations, he continued operating these machines across convenience stores in Britain, using a false alias to circumvent the law.
The transactions lacked due diligence checks, with the court noting a high probability of the machines being used for illicit activities like money laundering or tax evasion. This fraudulent operation yielded substantial profits for Osunkoya, highlighting the potential financial gains from such unlawful activities.
The sentencing for these offenses will occur at Southwark Crown Court, with no date currently set. This case underscores the regulatory challenges posed by crypto ATMs, devices that remain unapproved by the FCA. Steve Smart, joint executive director of enforcement and market oversight at the FCA, emphasized the unlawful nature of all crypto ATMs in the UK, cautioning the public about the risks of dealing with such machines.
In response, the FCA has strengthened its oversight and enforcement actions. Collaborating with local police, the agency has executed raids on suspected illegal ATM sites in cities including London, Leeds, Exeter, Sheffield, and Nottingham. These efforts have resulted in the shutdown of over two dozen sites, demonstrating the FCA’s commitment to eliminating unauthorized crypto ATM operations.
The UK regulatory authorities are intensifying their scrutiny and actions against illegal crypto ATMs, reflecting a broader effort to uphold financial compliance.
