The UK's Financial Conduct Authority (FCA) has taken unprecedented action against an individual accused of running an illegal network of cryptocurrency ATMs. As the market watchdog emphasizes, this is its first set of charges involving physical machines that allow for the buying and selling of digital assets.

At the same time, the FCA is reminding that “there are no legal crypto ATM operators in the UK.” Any such machines operate illegally, and those using them indirectly contribute to the global money laundering scheme.

Illegal Crypto ATM Network

A 45-year-old London resident faces charges for allegedly operating multiple crypto ATMs without FCA registration. These kiosks, which allow users to buy or convert money into cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term, processed transactions totaling £2.6 million across various locations between December 2021 and September 2023.

We've charged Mr Olumide Osunkoya for unlawfully running multiple crypto ATMs without FCA registration. #CryptoATM #CryptoNews #FinancialRegulationhttps://t.co/eVWEvnMbUw

— Financial Conduct Authority (@TheFCA) September 10, 2024

This case represents the FCA's first criminal prosecution related to unregistered cryptoasset activity under the Money Laundering Regulations of 2017. It also sets a precedent as the first charges brought against an individual for operating a network of crypto ATMs in the UK.

“Our message today is clear. If you're illegally operating a crypto ATM, we will stop you,” commented Therese Chambers, joint executive director of enforcement and market oversight at the FCA. “If you're using a crypto ATM, you are handing your money directly to criminals.”

The charges against Osunkoya include two offenses under the Money Laundering Regulations for operating crypto ATMs without FCA registration, two offenses under the Forgery and Counterfeiting Act 1981 for allegedly creating and using false documents, and an offense of possessing criminal property under the Proceeds of Crime Act 2002.

Osunkoya is scheduled to appear before Westminster Magistrates' Court on September 30, 2024. The outcome of this case could have significant implications for the regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term of cryptocurrency services in the UK and may serve as a deterrent to others operating in this space without proper authorization.

FCA Shut Down 26 Illegal Crypto ATMs in 2023

This legal action follows a recent FCA operation conducted in partnership with law enforcement agencies to tackle illegally operated crypto ATMs across the country. In 2023, the FCA inspected 34 locations suspected of hosting such machines, resulting in the disruption of 26 unlawfully operating ATMs.

The efforts by the FCA seem to be a battle against windmills. In many other places around the world, crypto ATMs are immensely popular. For instance, in the United States, over 31,000 such devices have been installed. Although the regulator may be right in saying that using crypto ATMs facilitates the circulation of cash of unknown origin and may support the laundering of dirty money, many developed economies have implemented a series of regulations aimed at blocking this process.

Unfortunately, ATMs are also used in scams. According to data from the Federal Trade Commission (FTC), users lost $110 million due to these scams in 2023 alone.

Emma Fletcher, a senior data researcher at the FTC, explained that scammers are increasingly using these machines to deceive people. “Scammers are using these machines as a way to take money from people more than we've seen in the past,” she told NBC News.