Outside Source
The FCA is throwing the book at the head of GidiPlus Limited for operating an ATM network after being denied registration.
News
Own this piece of crypto history
The United Kingdom’s Financial Conduct Authority (FCA) has pressed criminal charges against Olumide Osunkoya for running a network of cryptocurrency automatic teller machines (ATMs). Osunkoya is the first person charged in the United Kingdom for operating a network of crypto ATMs, the FCA said.
One network — many violations
According to the FCA, Osunkoya’s ATM network processed 2.6 million British pounds ($3.4 million) of crypto transactions between Dec. 29, 2021, and Sept. 8, 2023. Osunkoya is accused of two violations of the UK’s so-called Money Laundering Regulations (MLRs), known more fully as the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017.
Osunkoya is also being charged with two offenses under the Forgery and Counterfeiting Act 1981 for creating and using false documents and one count of possession of criminal property under the Proceeds of Crime Act 2002.
Osunkoya will appear in court on Sept. 30. FCA joint executive director of enforcement and market oversight Therese Chambers said in a statement:
“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.”
Although Osunkoya is the first person to be charged with running an illegal ATM network, Habibur Rahman, the operator of a single crypto ATM, was arrested in April 2023 for the offense. He is free on bail and awaiting a court appearance on Oct. 10. In addition to operating the ATM without registration, Rahman is charged with laundering 300,000 pounds ($392,000) in criminal proceeds.
No legal crypto ATMs in the UK
Osunkoya is the director of GidiPlus Limited, a company that specializes in crypto ATM services. Under Regulation 92 of the MLRs, an officer of a company can be charged with offenses committed by the company with their consent or through their negligence.
Source: Financial Conduct Authority
In November 2021, GidiPlus applied to become a crypto asset exchange provider to legalize its trade. However, it was refused registration, and it lost an appeal the following month.
Related: Global Bitcoin ATM network lost over 600 machines in 2 months
There are currently no legally operated crypto ATMs in the United Kingdom. The FCA ordered the closure of all unregistered crypto ATMs in March 2022, with the result that there were no legal crypto ATMs.
The FCA began taking action against the illegal ATMs the following February. Those actions lasted through the entire year.
Magazine: How Chinese traders and miners get around China’s crypto ban
This article first appeared at Cointelegraph.com News
