FCA Files Allegations Against Illegal Crypto ATM Operators In UK

The FCA has filed charges against illegal crypto ATM operators in the UK (Photo; Doc. Financemagnates)

JAKARTA - The UK's Financial Behavior Authority (FCA) has sued Olumide Osunkoya on charges of operating an unregistered crypto ATM network. This case is the first in the UK, where a person is charged for running a crypto ATM without a license, which is deemed to have violated anti-money laundering regulations. The transaction value involved reached 2.6 million Pound Sterling (approximately Rp52 billion) in nearly two years.

The FCA, as the highest authority governing financial behavior in the UK, states that the prosecution is based on the 2017 Money Laundering, Terrorist Financing and Fund Transfer Regulation (MLRs). According to the FCA, Osunkoya runs a crypto ATM that processes transactions between December 29, 2021, to September 8, 2023 without registering or obtaining permission from the authorities. In addition to these allegations, he also faces charges of forgery and illegal property ownership.

This step was taken as part of an effort by FCA together with law enforcement to stop illegal crypto ATM activities that are increasingly prevalent in the UK. Quoted from Bitcoin.com News, according to Therese Chambers, executive director of FCA enforcement, no legal crypto ATM operator is allowed to operate in the UK. If you illegally operate a crypto ATM, we will stop you," he said.

Crypto ATMs operate like traditional ATMs, but allow users to buy and sell digital assets such as Bitcoin. While this technology facilitates crypto transactions, lack of regulation and oversight has raised concerns about potential money laundering and other criminal activities. Prosecution of Osunkoya is an important step in ensuring that the UK's financial system is not misused for illegal purposes.

This case highlights the FCA's determination to oversee illegal crypto activities in the UK. With the growing popularity of digital assets, governments, and financial authorities in various countries, including the UK, further tighten rules to prevent crypto-related financial crimes. Prosecution against Osunkoya shows that FCA is ready to take firm action against those who violate regulations.

Osunkoya is scheduled to face trial in court on September 30, 2024. The outcome of this case could set an important precedent for further handling illegal crypto ATM operators in the UK and may encourage increased regulations in this sector.