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

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As a seasoned researcher with a keen interest in the intersection of finance and technology, I find this development particularly intriguing. The U.K.’s Financial Conduct Authority (FCA) has taken a significant step by charging Olumide Osunkoya for operating unregistered crypto ATMs, marking the first criminal prosecution involving such activities in the U.K. This case highlights the growing importance of regulatory oversight in the rapidly evolving crypto space.

As a researcher, I’ve uncovered an intriguing case where a gentleman residing in London is facing charges from the Financial Conduct Authority (FCA). The allegations state that he was running numerous cryptocurrency Automated Teller Machines (ATMs) without the necessary registration, and as a result, facilitating millions of transactions in the digital currency space.

In a significant move, the Financial Conduct Authority of the United Kingdom has accused a resident of London, Olumide Osunkoya, of illegally managing cryptocurrency Automated Teller Machines (ATMs) without proper registration. This marks the FCA’s initial criminal case related to unregistered activities in the crypto sector.

According to a statement issued on September 10th, the regulatory body for finance has claimed that Osunkoya operated several cryptocurrency Automated Teller Machines (ATMs) in different locations. These ATMs were involved in over £2.6 million ($3.4 million) worth of transactions from December 2021 to September 2023.

In simpler terms, according to the Financial Conduct Authority (FCA), this case fits under the regulations regarding Money Laundering, Terrorist Financing, and Transfer of Funds from 2017. Therefore, Osunkoya is the first individual charged for operating an unregistered network of cryptocurrency Automated Teller Machines (ATMs) within the United Kingdom.

Today’s communication is straightforward: We’re making it known that we won’t tolerate the illegal operation of Cryptocurrency Automated Teller Machines (ATMs). Using these machines, however, may unwittingly put your funds in the hands of criminals. These ATMs can be manipulated by criminals to laundering money on a global scale.

Therese Chambers, the FCA’s joint executive director of enforcement and market oversight

No crypto ATMs legally operate in UK

Crypto Automated Teller Machines (ATMs) enable users to purchase or exchange traditional money for cryptocurrency. However, their legal operation necessitates supervision by the Financial Conduct Authority (FCA), which Osunkoya is accused of circumventing. The FCA, in collaboration with law enforcement agencies, has been intensifying efforts to combat unlawful crypto ATM operations. This case is one such example within a broader initiative against illegal crypto ATMs.

According to the Financial Conduct Authority (FCA), no cryptocurrency Automated Teller Machines (ATMs) are currently lawfully functioning within the United Kingdom. The FCA also advises consumers of the significant risks associated with cryptocurrencies, including the possibility of losing all invested funds. Osunkoya is scheduled to appear at Westminster Magistrates’ Court on September 30.

As a researcher, I’ve noticed an impressive surge in the global Bitcoin ATM market. Currently, as we stand in August, there are over 38,000 Bitcoin Automated Teller Machines (ATMs) globally, marking a substantial increase from approximately 10,000 units back in October 2020. However, this number has dipped slightly from its peak of nearly 40,000 in December 2022.

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2024-09-10 16:18