Watchdog charges first person with operating illegal crypto ATM network in UK

The UK’s financial watchdog has charged a man with operating a network of cryptocurrency ATMs for the first time.

Olumide Osunkoya, 45, is due to appear at Westminster Magistrates’ Court on September 30 on charges of running multiple crypto ATMs without registering them with the regulator.

Crypto ATMs are machines where you can buy and sell cryptocurrencies – which is digital money, such as bitcoin or ethereum – in exchange for cash.

They are legal in the US, where there are thousands of machines offering withdrawals in scores of different crypto tokens, according to tracking website Coin ATM Radar.

But in the UK, they must be registered with the Financial Conduct Authority (FCA). None have currently been given registration.

The FCA accused Mr Osunkoya, a London resident, of running a network of machines which processed £2.6 million in crypto transactions between December 2021 and September 2023.

Therese Chambers, joint executive director of enforcement and market oversight at the FCA, said: “Our message today is clear. 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.”

The charges come amid renewed concerns around the use of services such as crypto ATMs following a resurgence in the value of tokens such as bitcoin.

Regulators are especially concerned about how volatile crypto is compared to traditional investments such as stocks and shares, after many people lost vast amounts of money when values crashed in 2022.

The price of one bitcoin has doubled to over £43,600 in the last 12 months, up from £20,600 this time last year.

It comes after a trader accused of operating a single illegal cryptocurrency ATM became the first person in the UK to be charged with the offence, police have said.

Habibur Rahman, of East Ham, London, was charged with running an unregistered machine after police officers searched Gadcet shop in Chatham high street, Kent, in April 2023.