Unlicensed Crypto ATM Network in the UK Faces Criminal Charges

The UK’s Financial Conduct Authority takes action against an unlicensed crypto ATM network operator accused of money laundering and forgery.

The United Kingdom’s Financial Conduct Authority (FCA) has filed criminal charges against Olumide Osunkoya, the head of GidiPlus Limited, for operating an unlicensed network of cryptocurrency ATMs. This marks the first time the UK has taken legal action against an individual for running an illegal crypto ATM network, signaling a major regulatory shift toward stricter oversight of crypto-related activities.

According to the FCA, Osunkoya's network processed approximately £2.6 million ($3.4 million) in crypto transactions between December 2021 and September 2023. He now faces multiple charges, including violations of the UK’s Money Laundering Regulations (MLRs), along with offenses related to forgery, counterfeiting, and possession of criminal property. Osunkoya is set to appear in court on September 30, where these allegations will be addressed.

FCA joint executive director of enforcement and market oversight, Therese Chambers, made a strong statement regarding the case: “If you’re illegally operating a crypto ATM, we will stop you. Criminals can exploit crypto ATMs to launder money globally.”

Although Osunkoya is the first individual charged for operating a network of unlicensed crypto ATMs, the FCA had previously arrested Habibur Rahman in April 2023 for running a single illegal crypto ATM. Rahman is also accused of laundering £300,000 ($392,000) and is awaiting his court appearance in October.

GidiPlus Limited, Osunkoya’s company, had applied for registration as a crypto asset exchange provider in November 2021. However, its application was denied, and an appeal in December 2021 was unsuccessful. Despite these setbacks, Osunkoya continued to operate the ATM network, leading to the FCA’s current legal action.

The FCA's crackdown on unlicensed crypto ATMs began in 2022 when it ordered the closure of all unregistered ATMs in the UK. By March of that year, there were no legal crypto ATMs operating in the country. However, illicit operations continued, and the FCA ramped up enforcement efforts throughout 2023.

The case against Osunkoya seems to be against criminals who use crypto to launder money, however, anyone can launder money in any way. As the regulatory landscape tightens, operators of unauthorized crypto services are likely to face increased scrutiny and legal consequences. This is a negative day for Crypto as a whole.

photo source / Blockonome