UK Cracks Down on Illegal Crypto ATMs: First Network Operator Charged

As a seasoned crypto investor with over a decade of experience under my belt, I’ve witnessed the evolution of the digital currency landscape and its challenges. The recent news about the FCA crackdown on unauthorized crypto ATMs in the UK is an interesting turn of events.


In simple terms, the United Kingdom’s Financial Conduct Authority (FCA) has publicly charged an individual for running a group of unlicensed cryptocurrency Automated Teller Machines (ATMs).

Olumide Osunkoya, a 45-year-old resident of London, is said to have overseen several cryptocurrency ATM locations, processing transactions totaling around 2.6 million British pounds (around $3.4 million) between December 2021 and September 2023.

FCA Continues Crackdown on Unauthorized Crypto ATMs in the UK

Osunkoya performed the action without the required legal authorization. He’s set to answer charges at the Westminster Magistrates’ Court on September 30th.

In their announcement, the Financial Conduct Authority pointed out that this specific case represents the initial time an individual has been accused of managing a system of cryptocurrency ATMs within the United Kingdom.
After last month’s apprehension, the Financial Conduct Authority (FCA) has stepped up its efforts to combat illicit cryptocurrency ATMs within the UK. In a significant instance, a 37-year-old resident of London, Habibur Rahman, was taken into custody as the first individual in the UK accused of operating an unlicensed cryptocurrency cash machine.
Reportedly, Rahman stands charged with the act of concealing £392,557 through the method of exchanging it for cryptocurrencies.
According to a recent announcement, Therese Chambers, who shares the role of Executive Director for Enforcement and Market Oversight at the Financial Conduct Authority (FCA), stated:
“Our message today is clear. If you’re illegally operating a crypto ATMs, we will stop you.”
German Authorities Also Clamp Down on Unauthorized BTC ATMs
Over the past few days, I’ve found myself closely following an extensive crackdown on illegal Bitcoin ATMs that has been jointly undertaken by the German Federal Financial Supervisory Authority (BaFin), local law enforcement, the Deutsche Bundesbank, and the Federal Criminal Police Office (BKA). This operation aims to curb the spread of these machines across Germany.
Officials took possession of multiple unapproved devices (machines) and obtained approximately 250,000 euros ($278,000) in cash from cryptocurrency Automated Teller Machines (ATMs), which were being used illegally.
As a researcher, I’d like to share some recent developments. Recently, BaFin issued a stern caution to the public, urging vigilance against these illicit machines that may be used for questionable activities. In a coordinated effort involving 60 officers, raids were conducted at 35 sites, leading to the seizure of 13 unauthorized Bitcoin Automatic Teller Machines (ATMs) operating in violation of the law.
Australia Sees Explosive Growth in BTC ATMs Amid Rising Popularity
Australia is rapidly developing as a bustling center for Bitcoin Automated Teller Machines (ATMs), witnessing an astonishing surge in their numbers. As per Coin ATM Radar, the total number of these machines has soared from a mere 73 in 2020 to a staggering 1,200 today, representing a whopping sixteen-fold increase over the past two years.
Worldwide, we’ve seen a consistent increase in the deployment of cryptocurrency Automated Teller Machines (ATMs), with about one new unit installed approximately every 48 hours on average.
This trend has sparked a dynamic discussion: on one hand, those managing these kiosks see the rise as evidence of expanding consumer desire and a shift towards widespread approval; however, critics voice worries about possible illicit activities and doubt if the growth is driven by authentic curiosity or just speculation.
 

Read More

2024-09-10 18:14