News

FCA charges individual for operating unregistered crypto ATMs

Thursday 12 September 2024 13:35 CET | News

The Financial Conduct Authority (FCA) has charged a 45-year-old London resident, with operating multiple cryptocurrency ATMs without the necessary FCA registration.

 

The ATMs in question allow users to purchase or exchange money for cryptoassets. Mr. Osunkoya allegedly operated the unregistered machines across several locations, facilitating GBP 2.6 million in cryptocurrency transactions between 29 December 2021, and 8 September 2023.  

The FCA’s charges represent the first criminal prosecution in the UK related to unregistered cryptoasset activity under the Money Laundering, Terrorist Financing, and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs). Additionally, this is the first case involving the operation of a network of crypto ATMs in the country.

 

The Financial Conduct Authority (FCA) has charged a 45-year-old London resident, with operating multiple cryptocurrency ATMs without the necessary FCA registration.

 

FCA's ongoing efforts to combat illegal crypto ATMs

The charges come in the wake of a broader FCA initiative, carried out in collaboration with law enforcement agencies, to address the issue of illegally operated crypto ATMs across the UK. Representatives from the Financial Conduct Authority emphasised the authority's stance on the matter. They stated that any illegal operation of crypto ATMs will be halted, adding that these machines can be exploited by criminals to launder money globally. 

At the time of writing, no crypto ATMs are legally operating in the UK according to the FCA. Mr. Osunkoya is set to appear before Westminster Magistrates’ Court on 30 September 2024. The FCA has also reiterated its warning that cryptocurrency remains a largely unregulated and high-risk market in the UK, and consumers are advised to be prepared to lose all invested funds.

Other developments from the FCA 

In other developments, the Payment System Regulator and the Financial Conduct Authority launched a joint call in July 2024 to gather additional information on Big Tech and the use of digital wallets. 

According to the two regulatory bodies, more than 50% of all adults in the UK now use one type of digital wallet, with Apple Pay, Google Pay, and PayPal being the top favourites. Thus, the regulators aimed to further understand the benefits and risks associated with using digital wallets from stakeholders across the payments services, including digital wallet and technology providers, as well as service users.


Source: Link


Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: cryptocurrency, ATM, regulation, digital assets
Categories: Banking & Fintech
Companies: Financial Conduct Authority
Countries: United Kingdom
This article is part of category

Banking & Fintech

Financial Conduct Authority

|
Discover all the Company news on Financial Conduct Authority and other articles related to Financial Conduct Authority in The Paypers News, Reports, and insights on the payments and fintech industry: