FCA charges man for operating crypto ATMs that handled $3.4m

The FCA has charged a man in London with illegally operating multiple cryptocurrency ATMs without registration and processing millions of dollars in transactions.

The UK Financial Conduct Authority has charged a London-based man named Olumide Osunkoya with illegally operating cryptocurrency ATMs without the required registration, marking the regulator’s first criminal prosecution related to unregistered cryptocurrency activity.

In a press release dated September 10, the financial regulator accused Osunkoya of conducting transactions worth £2.6 million ($3.4 million) by operating multiple crypto ATMs in various locations between December 2021 and September 2023.

The FCA says the case falls under the Money Laundering, Financing of Terrorism and Transfer of Funds Regulations 2017 and Osunkoya is the first person to be accused of operating an unregistered crypto ATM network in the UK

“Our message today is clear. If you are operating a crypto ATM illegally, we will stop you. If you are using a crypto ATM, you are handing your money directly to criminals. Criminals can use crypto ATMs to launder money globally.”

Therese Chambers, joint director of enforcement and market surveillance at the FCA

No crypto ATMs operate legally in the UK

Crypto ATMs allow users to buy or convert cryptocurrencies into crypto, but their legal operations require FCA oversight, which Osunkoya allegedly evaded. The FCA has recently stepped up its efforts to crack down on illegally operated crypto ATMs by working in partnership with law enforcement, and this case is part of that broader initiative.

The FCA states that no crypto ATMs are legally operating in the UK and continues to warn consumers about the high risks of cryptocurrencies, including the potential to lose all funds deposited. Osunkoya is due to appear at Westminster Magistrates’ Court on September 30.

Globally, the Bitcoin ATM market has seen significant growth. As of August, there were over 38,000 Bitcoin ATMs worldwide, up from just over 10,000 in October 2020, but down from a peak of nearly 40,000 in December 2022.