In a significant move to curb illicit financial activities, the UK’s Financial Conduct Authority (FCA) has taken legal action against Olumide Osunkoya, the head of Gidiplus Limited, for running an illegal crypto ATM network.
This marks a major milestone in the FCA’s ongoing efforts to regulate the cryptocurrency market and prevent money laundering.
What really happened?
According to the FCA, Osunkoya’s ATM network processed 2.6 million British pounds ($3.4 million) of crypto transactions between Dec. 29, 2021, and September 8, 2023. Osunkoya is accused of two violations of the UK’s so-called Money Laundering Regulations (MLRs), known more fully as the Money Laundering, Terrorist Financing, and Transfer of Funds (Information on the Payer) Regulations 2017.
He is also charged with two offenses under the Forgery and Counterfeiting Act 1981 for creating and using false documents and one count of possessing criminal property under the Proceeds of Crime Act 2002.
Osunkoya will appear in court on Sept. 30, 2024.
FCA’s Tough Stance on Illegal crypto operations charges
The FCA has made it clear that it will not tolerate illegal crypto ATM operations. Therese Chambers, the agency’s Joint Executive Director of Enforcement and Market Oversight, has emphasized the serious consequences of operating such machines without proper authorization. Users of these ATMs could be inadvertently supporting criminal activities, underscoring the importance of adhering to regulations.
“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.” she stated.
Gidiplus Limited, under Osunkoya’s leadership, had previously sought to legitimize its operations by applying for registration as a crypto asset exchange provider. However, the FCA denied this application, and subsequent appeals were unsuccessful.
Are crypto ATMs now illegal?
No, they’re not. However, in response to the growing number of illegal crypto ATMs, the FCA has intensified its efforts to shut down these machines. The agency has been actively identifying and targeting operators who are not complying with financial regulations.
Osunkoya is not the only individual facing legal consequences for operating unlicensed crypto ATMs. Habibur Rahman, another operator, was arrested earlier this year and is accused of money laundering. These cases highlight the FCA’s commitment to holding individuals accountable for their actions.
The FCA’s crackdown on illegal crypto ATM operations is a significant step towards ensuring the integrity of the UK’s financial system. By taking a firm stance against unauthorized operations, the agency is protecting consumers and preventing illicit activities. As the cryptocurrency market continues to evolve, it is essential that all participants adhere to the necessary regulations.
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