As a seasoned crypto investor with a keen eye for regulatory developments, I find the recent actions taken by the UK’s Financial Conduct Authority (FCA) against unregistered crypto ATM operators to be both reassuring and necessary. Having witnessed the rapid growth of the crypto market, it’s essential for regulators to maintain control and ensure consumer protection.
The British financial watchdog, the Financial Conduct Authority (FCA), has brought charges against an individual named Olumide Osunkoya for managing a system of unlawful cryptocurrency machines across the UK. These machines reportedly handled millions of pounds‘ worth of digital currencies.
Unlawful ATM Network Operator Processed Millions
As an analyst, I’ve uncovered that from December 29, 2021, through September 8, 2023, my findings indicate that Osunkoya was managing these ATMs without the necessary registration from the Financial Conduct Authority (FCA). The network of machines under his control processed approximately £2.6 million during this period.
The charge is a violation under the Money Laundering, Terrorist Financing, and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs). At the moment, the UK has no legal crypto ATM operators.
The FCA’s co-head of enforcement and market surveillance issued a cautionary statement towards delinquents, as stated by Therese Chambers.
Today’s announcement is straightforward: We’ll take action against those who break the law by running cryptocurrency Automated Teller Machines (ATMs). It’s crucial to understand that utilizing a crypto ATM means you’re essentially giving your funds directly to criminal elements. These machines can be misused for money laundering activities on a global scale.
As per a declaration from the Financial Conduct Authority (FCA), Osunkoya initially served as a director for a company named Gidiplus Ltd, eventually becoming its sole proprietor. Currently, the FCA has accused Osunkoya of two violations pertaining to Regulations 86 and 92 within the money laundering regulations. Furthermore, Osunkoya is being charged with two crimes related to the utilization of counterfeit documents in connection to unlawful crypto transactions. An additional charge involves allegedly holding property acquired through criminal activities under the Proceeds of Crime Act 2022.
Shutting Down Crypto ATMs in the UK
In April, law enforcement officials in Kent County, England, conducted a search at a store and discovered several cryptocurrency Automated Teller Machines (ATMs), with one of them openly displayed. A 37-year-old man named Habibur Rahman was apprehended and charged for operating the machine without Financial Conduct Authority (FCA) registration, in addition to allegations that he laundered £300,000 of illicit funds by converting them into cryptocurrency. This marked the first instance where an individual faced charges for managing a single ATM without FCA registration.
Last July, the Financial Conduct Authority (FCA) closed down 26 cryptocurrency automated teller machines (ATMs) in the UK, as part of a comprehensive probe into unauthorized devices functioning within the country. The FCA took action by disabling ATMs located in cities such as London, Nottingham, Exeter, Sheffield, and Leeds. As stated in an official statement, the FCA reported an incident to the Citizens Advice Bureau, a self-governing agency that assists people with various matters. The announcement detailed a case where someone deposited £1,000 into a crypto ATM in Sheffield but did not receive any cryptocurrency and failed to retrieve their funds. Regrettably, the store’s employees provided minimal assistance.
Over time, the FCA has repeatedly warned against the use of crypto ATMs. However, regulations vary between countries. For instance, according to an April filing with the United States Securities and Exchange Commission (SEC), crypto ATM operator Bitcoin Depot hit $689 million in revenue for fiscal 2023, a 7% increase from the year before. At the time, the company expressed plans to add 8,000 kiosks to its network by the end of the year.
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2024-09-10 16:21