Olumide Osunkoya pleaded guilty in a UK court for illegally operating crypto ATMs.
- These ATMs processed over £2.6 million without FCA registration.
- This conviction marks the first of its kind under UK law.
- The FCA has intensified its crackdown on illegal crypto ATM operations.
- Osunkoya’s sentencing will be conducted at Southwark Crown Court.
In a pioneering legal outcome, Olumide Osunkoya has admitted to illegally running crypto ATMs, marking the first conviction of its kind in the United Kingdom. Despite being denied registration by the Financial Conduct Authority (FCA) in 2021, Osunkoya continued to operate at least 11 ATMs, which collectively handled more than £2.6 million in transactions from December 2021 to September 2023.
Britain’s current legal framework mandates that all ventures dealing in cryptoassets must receive FCA approval. However, none of the ATMs operated by Osunkoya were authorised, highlighting a significant breach of regulation. The ATMs were located in various convenience shops across the country, operating without any customer due diligence checks, and raising suspicions of potential use in money laundering or tax evasion activities.
The court revealed that Osunkoya used a false identity to evade the FCA’s regulatory oversight, deriving substantial profits from these operations. His activities have been a pivotal point of enforcement for the FCA, which has been actively collaborating with local police to conduct raids on suspect ATM sites across major cities such as London, Leeds, Exeter, Sheffield, and Nottingham. To date, more than two dozen locations have been shut down.
Steve Smart, the joint executive director of enforcement and market oversight at the FCA, previously cautioned that any usage of crypto ATMs in the UK is essentially supporting illegal operations, potentially facilitating fraud and related crimes.
The sentencing for Olumide Osunkoya on the five counts of unregistered operation of crypto ATMs is yet to be scheduled at Southwark Crown Court, underscoring the ongoing commitment of regulators to enforce compliance in the rapidly evolving realm of cryptoassets.
This case underscores the importance of stringent regulatory compliance in the digital asset landscape.
