Gairika Mitra
The Financial Conduct Authority (FCA) in the United Kingdom on Tuesday charged 45-year-old Olumide Osunkoya for running multiple crypto ATMs without a proper FCA registration.
“Mr Osunkoya is accused of running crypto ATMs, which processed £2.6m (approx. $3.4 million) in crypto transactions across multiple locations between 29 December 2021 and 8 September 2023 without the required registration,” the agency said in a press release.
This is reportedly the first time an individual is being charged in relation to illegal crypto ATMs. Osunkoya is scheduled to appear at Westminster magistrates court at the end of this month.
Crypto ATMs operate by allowing people to buy or convert traditional currency into crypto assets like Bitcoin or Ethereum. Unregulated, illegal crypto ATMs can become vehicles for money laundering and other illicit activities.
Therese Chambers, joint executive director of enforcement and market oversight at the FCA, highlighted the risk associated with crypto ATMs. “If you’re illegally operating a crypto ATM, we will stop you. If you’re using a crypto ATM, you are handing your money directly to criminals. Criminals can exploit crypto ATMs to launder money globally. There are no legal crypto ATM operators in the UK,” she said.
The FCA is responsible for overseeing anti-money laundering (AML) activities. The agency has also been tracking counter-terrorist financing (CTF) measures for UK crypto asset businesses since 2020. With that being said, any firm offering cryptocurrency services must be registered with the FCA.
Crypto ATMs Present in Other Parts of the Globe
Other countries have also seen a rise legal and illegal crypto ATMs.
The Australian Federal Police (AFP) even issued an alert noting that Australians have lost a minimum of $180 million to cryptocurrency investment scams over the past year. The AFP said that the most common investment frauds are the pig butchering scams and deep fakes. In August, The Shib Daily reported on the increased presence of crypto ATMs in Australia, rising to 17% in the past two years, making the country the third-largest market for such machines. The Australian authorities called it a “money laundering vulnerability.”
To date, Australia has around 1,162 machines, from just 67 the year before. Australia reportedly added around 1,000 ATMs in the months of April to May 2024. Crypto ATMs have also become a common spectacle in New Zealand, which saw machine numbers soar from zero to 157 kiosks over the past year.
Read More
- Australia Becomes Third-Largest Market for Crypto ATMs Amid Money Laundering Concerns
- FBI Report: Americans Lose $5.6 Billion to Cryptocurrency Fraud in 2023
- Australians Lose $180 Million to Crypto Scams in a Year, Says Federal Police
Gairika holds positions in BTC. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
