The UK's Financial Conduct Authority (FCA) took unprecedented action against a bitcoin ATM network operator. The market watchdog underlines that this is the first batch of accusations involving physical equipment that trade digital assets.
The FCA further notes that “there are no legal crypto ATM operators in the UK.” Such devices are unlawful and indirectly aid global money laundering.
A 45-year-old Londoner is accused of running many crypto ATMs without FCA registration. In December 2021 and September 2023, these kiosks handled £2.6 million in cryptocurrency transactions at different locations.
This is the FCA's first Money Laundering Regulations 2017 criminal prosecution of unregistered cryptoasset activities. The first accusations against a UK crypto ATM operator established a precedent.
“Our message today is clear. Therese Chambers, FCA joint executive director of enforcement and market monitoring, said the FCA will ban illicit crypto ATM operators. “Using a crypto ATM gives your money to criminals.”
Osunkoya faces two Money Laundering Regulations charges for operating crypto ATMs without FCA registration, two Forgery and Counterfeiting Act 1981 charges for allegedly creating and using false documents, and a Proceeds of Crime Act 2002 charge for possessing criminal property.
Westminster Magistrates' Court will hear Osunkoya on September 30, 2024. This decision may affect UK cryptocurrency laws and prevent unlicensed operators.
This lawsuit follows an FCA-law enforcement campaign to shut down unauthorized crypto ATMs nationwide. In 2023, the FCA investigated 34 suspicious ATM sites and shut down 26 illegal ATMs.
FCA efforts appear to be fighting windmills. In other countries, crypto ATMs are quite popular. In the US, around 31,000 similar devices are deployed. The regulator may be true that crypto ATMs help launder illicit money, but many developed nations have passed laws to stop this.
Unfortunately, ATM frauds occur. The FTC said that these frauds cost customers $110 million in 2023.
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