The United Kingdom has recorded its first conviction related to the operation of illegal Cryptocurrency ATMs. The person responsible, Olumide Osunkoya, pleaded guilty on Monday to operating an unauthorized network of these ATMs across the country, handling millions in transactions, despite being denied registration in the UK by the Financial Conduct Authority (FCA). 2021.
The FCA detailed that Osunkoya faced five charges before Westminster Magistrates’ Court, in a case that has become the first of its kind under anti-money laundering laws in the United Kingdom. The illegal network operated at least 11 cryptocurrency ATMs that processed more than £2.6 million (approximately $3.5 million) in cryptocurrency transactions between December 2021 and September 2023.
A clandestine operation that continued despite warnings
Although the FCA rejected Osunkoya’s registration in 2021, he continued to operate and expand his ATM network in various convenience stores across the UK. The financial regulator said Osunkoya failed to carry out customer due diligence and source of funds checks on those using the ATMs, allowing individuals involved in money laundering and tax evasion to use the machines for illicit activities.
In addition to operating without proper authorization, Osunkoya faces additional charges of falsifying documents and possession of £19,540 in illicit property, allegedly obtained from his network of cryptocurrency ATMs. The court also revealed that he attempted to deceive authorities by falsely stating that he had sold the business to a fictitious person.
Possible consequences and penalties
The FCA highlighted that there are currently no legal cryptocurrency ATM operators in the UK, making this case a key precedent for the regulation of the sector. Osunkoya’s sentencing is pending at Southwark Crown Court, where he could face up to 14 years in prison for his offences.
In summary
This Olumide Osunkoya case represents a turning point in cryptocurrency regulation in the UK, highlighting the importance of regulatory diligence and transparency in a market that is still growing. The FCA has demonstrated its commitment to strengthening anti-money laundering laws, while unregulated operators face tough penalties.
Do you want to always be updated in the world of cryptocurrencies? Subscribe now to the CriptoTendencia WhatsApp channel! Here you will instantly receive the most relevant information about Bitcoin, Altcoins, DeFi, NFTs, Blockchain and the Metaverse.
Related
Crypto Keynote USA
For the Latest Crypto News, Follow ©KeynoteUSA on Twitter Or Google News.
