Money
Weekend Essay: FCA takes a tough stance on crypto ATMs
The FCA is cracking down on crypto ATM operators.
Earlier this year, the regulator – alongside law enforcement agencies – raided several sites around the country suspected of hosting illegally-operated crypto ATMs.
Several arrests were made and crypto cash machines seized.
This week, the FCA announced its first crypto criminal prosecution. The regulator said it has charged a 45-year-old Londoner with running illegal crypto ATMs.
Olumide Osunkoya is being charged with two offences under the money laundering, terrorist financing and transfer of funds regulations.
He is also charged with two offences under the Forgery and Counterfeiting Act 1981 relating to false documents, as well as an offence of possession of criminal property under the Proceeds of Crime Act 2002.
Osunkoya is the first person to be prosecuted for illegally operating crypto ATMs in the UK.
He is accused of processing £2.6m in crypto transactions across multiple locations between 29 December 2021 and 8 September 2023.
During that period, he acted as a director of a company named Gidiplus Ltd and later as a sole practitioner.
Gidiplus Ltd’s registration application was rejected by the regulator in 2021. A judicial review was also rejected by the High Court.
However, the FCA said this didn’t deter Osunkoya from running his Crypto ATMs without authorisation.
He will appear at Westminster Magistrates’ Court at the end of the month.
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 FCA said all such machines must be shut down or it will take action.
Crypto ATMs allow customers to buy or convert money into cryptoassets. There are no legal crypto ATM operators in the UK.
However, this has led to an underground web of crypto ATMs dotted around the country.
There are 81 functional crypto-ATMS in the UK, according to crypto-ATM directory Coin ATM Radar.
It is alleged that most of the crypto ATMs are used for money laundering and other criminal activities.
Kent police recently arrested a shopkeeper after seizing a number of crypto ATMs, including one that was on public display.
He is alleged to have laundered £300,000 of criminal cash by converting it into cryptocurrency.
The FCA crackdown follows similar enforcement actions by regulators in other jurisdictions such as the US and Germany.
In the US, where the vast majority of the global crypto ATMs are located, the authorities are shutting them down too.
Nearly 700 ATMs were seized by US law enforcement agencies between July and August.
One of them was Bitcoin of America, which shut down operations after several customers complained that they were collectively scammed out of tens of thousands of dollars.
Similarly, the FCA’s German equivalent, BaFin, seized 13 crypto ATMS from several locations. It said the machines could attract a hotbed of criminal activity.
Meanwhile, the FCA crypto clampdown is seen as too little for many who want tougher action.
Nick Barnard, partner at Corker Binning, said: “While cracking down on unauthorised crypto ATMs makes for headlines, in reality this is a distraction from the real challenges faced by the FCA in regulating cryptoassets.
“Even at their peak in 2020, the number of crypto ATMs operating in the UK was estimated to be in the low hundreds.
“Partly as a result of FCA intervention, none of those are known to remain in operation.
“Even when they were, crypto ATMs served a niche market of those seeking to exchange physical cash for cryptocurrency.
“By way of illustration, while the £2.6m allegedly processed by Mr Osunkoya’s enterprise is not insignificant, it is dwarfed by the $226m of transactions handled by part of the Coinbase Group in contravention of a Voluntary Requirement, resulting in a recent FCA fine of £3.5m.”
Mike Ringer, a financial services partner with law firm CMS, added: “It is surprising that this is FCA’s first criminal prosecution relating to unregistered cryptoasset activity under the money laundering regulations, especially as the registration regime has applied since January 2020.
“Frankly, though, this is the low hanging fruit for the FCA; cryptoasset ATMs are few and far between.
“There is much more public harm arising from unregistered cryptoasset exchanges or custodians or from breaches of the financial promotion regime by cryptoasset firms.
“There have been no criminal prosecutions in these vital sectors at all, and this is where the regulator needs to focus its enforcement efforts.”
However, the FCA has stressed that it will continue to take a zero-tolerance approach to crypto.
It warned people that crypto remains largely unregulated in the UK and is high-risk.
Advisers have consistently been the one demographic that have heeded the FCA’s call.
They have shielded the assets of their clients from the high-stake crypto casino. And this is commendable.
CryptoCurrency
Coinbase’s cbBTC surges to third-largest wrapped BTC token in just one week
According to data from CryptoQuant, cbBTC circulation supply has outpaced long-established players seven days after launch.
CryptoCurrency
Bitcoin options markets reduce risk hedges — Are new range highs in sight?
Bitcoin options market positioning shifted as BTC price shot through the $60,000 to $63,000 level.
CryptoCurrency
Ethereum is a 'contrarian bet' into 2025, says Bitwise exec
Ether price could be on track for another correction into a triple-bottom, marking the beginning of a big rally into 2025.
CryptoCurrency
Blockdaemon mulls 2026 IPO: Report
CryptoCurrency
SEC asks court for four months to produce documents for Coinbase
The financial regulator requested an extension until February 2025 to review “at least 133,582 unique documents” as part of discovery motions with Coinbase.
CryptoCurrency
‘Silly’ to shade Ethereum, the ‘Microsoft of blockchains’ — Bitwise exec
Ethereum is still home to the most active crypto developers and is the most attractive chain to build applications on top of for big companies, argues Bitwise’s Matt Hougan.
-
Sport9 hours ago
Joshua vs Dubois: Chris Eubank Jr says ‘AJ’ could beat Tyson Fury and any other heavyweight in the world
-
News1 day ago
You’re a Hypocrite, And So Am I
-
News10 hours ago
Israel strikes Lebanese targets as Hizbollah chief warns of ‘red lines’ crossed
-
Sport9 hours ago
UFC Edmonton fight card revealed, including Brandon Moreno vs. Amir Albazi headliner
-
CryptoCurrency8 hours ago
Ethereum is a 'contrarian bet' into 2025, says Bitwise exec
-
Technology8 hours ago
iPhone 15 Pro Max Camera Review: Depth and Reach
-
Science & Environment12 hours ago
How one theory ties together everything we know about the universe
-
Science & Environment23 hours ago
Quantum time travel: The experiment to ‘send a particle into the past’
-
CryptoCurrency9 hours ago
2 auditors miss $27M Penpie flaw, Pythia’s ‘claim rewards’ bug: Crypto-Sec
-
CryptoCurrency9 hours ago
Arthur Hayes’ ‘sub $50K’ Bitcoin call, Mt. Gox CEO’s new exchange, and more: Hodler’s Digest, Sept. 1 – 7
-
CryptoCurrency9 hours ago
Treason in Taiwan paid in Tether, East’s crypto exchange resurgence: Asia Express
-
CryptoCurrency9 hours ago
Leaked Chainalysis video suggests Monero transactions may be traceable
-
CryptoCurrency9 hours ago
Journeys: Robby Yung on Animoca’s Web3 investments, TON and the Mocaverse
-
CryptoCurrency9 hours ago
Louisiana takes first crypto payment over Bitcoin Lightning
-
CryptoCurrency9 hours ago
Are there ‘too many’ blockchains for gaming? Sui’s randomness feature: Web3 Gamer
-
CryptoCurrency9 hours ago
Crypto whales like Humpy are gaming DAO votes — but there are solutions
-
CryptoCurrency9 hours ago
Help! My parents are addicted to Pi Network crypto tapper
-
CryptoCurrency9 hours ago
$12.1M fraud suspect with ‘new face’ arrested, crypto scam boiler rooms busted: Asia Express
-
CryptoCurrency9 hours ago
‘Everything feels like it’s going to shit’: Peter McCormack reveals new podcast
-
Science & Environment12 hours ago
Future of fusion: How the UK’s JET reactor paved the way for ITER
-
CryptoCurrency9 hours ago
SEC sues ‘fake’ crypto exchanges in first action on pig butchering scams
-
CryptoCurrency9 hours ago
Fed rate cut may be politically motivated, will increase inflation: Arthur Hayes
-
CryptoCurrency9 hours ago
Decentraland X account hacked, phishing scam targets MANA airdrop
-
CryptoCurrency9 hours ago
CZ and Binance face new lawsuit, RFK Jr suspends campaign, and more: Hodler’s Digest Aug. 18 – 24
-
CryptoCurrency9 hours ago
Bitcoin miners steamrolled after electricity thefts, exchange ‘closure’ scam: Asia Express
-
CryptoCurrency9 hours ago
Cardano founder to meet Argentina president Javier Milei
-
CryptoCurrency9 hours ago
CertiK Ventures discloses $45M investment plan to boost Web3
-
CryptoCurrency9 hours ago
Memecoins not the ‘right move’ for celebs, but DApps might be — Skale Labs CMO
-
CryptoCurrency9 hours ago
Dorsey’s ‘marketplace of algorithms’ could fix social media… so why hasn’t it?
-
CryptoCurrency9 hours ago
Telegram bot Banana Gun’s users drained of over $1.9M
-
CryptoCurrency9 hours ago
Low users, sex predators kill Korean metaverses, 3AC sues Terra: Asia Express
-
CryptoCurrency9 hours ago
SEC asks court for four months to produce documents for Coinbase
-
CryptoCurrency9 hours ago
Blockdaemon mulls 2026 IPO: Report
-
News7 hours ago
“Beast Games” contestants sue MrBeast’s production company over “chronic mistreatment”
-
News7 hours ago
Sean “Diddy” Combs denied bail again in federal sex trafficking case in New York
-
Technology3 days ago
YouTube restricts teenager access to fitness videos
-
Science & Environment12 hours ago
‘Running of the bulls’ festival crowds move like charged particles
-
Politics23 hours ago
What is the House of Lords, how does it work and how is it changing?
-
Health & fitness2 days ago
Why you should take a cheat day from your diet, and how many calories to eat
-
MMA9 hours ago
UFC’s Cory Sandhagen says Deiveson Figueiredo turned down fight offer
-
MMA9 hours ago
Diego Lopes declines Movsar Evloev’s request to step in at UFC 307
-
Football9 hours ago
Niamh Charles: Chelsea defender has successful shoulder surgery
-
Football9 hours ago
Slot's midfield tweak key to Liverpool victory in Milan
-
Fashion Models8 hours ago
Miranda Kerr nude
-
Politics8 hours ago
Labour MP urges UK government to nationalise Grangemouth refinery
-
Science & Environment12 hours ago
Rethinking space and time could let us do away with dark matter
-
Entertainment7 hours ago
“Jimmy Carter 100” concert celebrates former president’s 100th birthday
-
CryptoCurrency9 hours ago
SEC settles with Rari Capital over DeFi pools, unregistered broker activity
-
Science & Environment20 hours ago
Sunlight-trapping device can generate temperatures over 1000°C
-
News7 hours ago
Brian Tyree Henry on voicing young Megatron, his love for villain roles
-
Health & fitness2 days ago
When Britons need GoFundMe to pay for surgery, it’s clear the NHS backlog is a political time bomb
-
Science & Environment22 hours ago
Quantum to cosmos: Why scale is vital to our understanding of reality
-
Science & Environment1 day ago
How to wrap your mind around the real multiverse
-
Technology3 days ago
Trump says Musk could head ‘government efficiency’ force
-
Science & Environment22 hours ago
X-ray laser fires most powerful pulse ever recorded
-
Science & Environment21 hours ago
How indefinite causality could lead us to a theory of quantum gravity
-
Science & Environment19 hours ago
Why we are finally within reach of a room-temperature superconductor
-
Science & Environment18 hours ago
Black holes scramble information – but may not be the best at it
-
Science & Environment9 hours ago
We may have spotted a parallel universe going backwards in time
-
CryptoCurrency9 hours ago
Telegram CEO cannot leave France, OpenSea receives Wells notice, and more: Hodler’s Digest, Aug. 25 – 31
-
CryptoCurrency9 hours ago
Five crypto market predictions that haven’t come true — yet
-
CryptoCurrency9 hours ago
Solana unveils new Seeker device, says it’s not just a ‘memecoin phone’
-
CryptoCurrency9 hours ago
Crypto scammers orchestrate massive hack on X but barely made $8K
-
CryptoCurrency9 hours ago
Bitcoiners are ‘all in’ on Trump since Bitcoin ’24, but it’s getting risky
-
CryptoCurrency9 hours ago
Real-world asset tokenization is the crypto killer app — Polygon exec
-
Science & Environment12 hours ago
Jupiter’s stormy surface replicated in lab
-
Politics12 hours ago
Owen Paterson loses ECHR appeal against report that preceded downfall | Owen Paterson
-
CryptoCurrency9 hours ago
Binance CEO says task force is working ‘across the clock’ to free exec in Nigeria
-
CryptoCurrency9 hours ago
Elon Musk is worth 100K followers: Yat Siu, X Hall of Flame
-
CryptoCurrency9 hours ago
Bitcoin price hits $62.6K as Fed 'crisis' move sparks US stocks warning
-
CryptoCurrency9 hours ago
Beat crypto airdrop bots, Illuvium’s new features coming, PGA Tour Rise: Web3 Gamer
-
CryptoCurrency9 hours ago
Bitcoin bull rally far from over, MetaMask partners with Mastercard, and more: Hodler’s Digest Aug 11 – 17
-
CryptoCurrency9 hours ago
VonMises bought 60 CryptoPunks in a month before the price spiked: NFT Collector
-
CryptoCurrency9 hours ago
Vitalik tells Ethereum L2s ‘Stage 1 or GTFO’ — Who makes the cut?
-
CryptoCurrency9 hours ago
Ethereum falls to new 42-month low vs. Bitcoin — Bottom or more pain ahead?
-
Business9 hours ago
Thames Water seeks extension on debt terms to avoid renationalisation
-
Business8 hours ago
How Labour donor’s largesse tarnished government’s squeaky clean image
-
Business8 hours ago
UK hospitals with potentially dangerous concrete to be redeveloped
-
Business7 hours ago
Axel Springer top team close to making eight times their money in KKR deal
-
News7 hours ago
Sean “Diddy” Combs denied bail again in federal sex trafficking case
-
News7 hours ago
Brian Tyree Henry on his love for playing villains ahead of “Transformers One” release
-
News7 hours ago
Brian Tyree Henry on voicing young Megatron, his love for villain roles
-
News5 hours ago
Woman sues Florida sheriff after mistaken arrest lands her in jail on Christmas
-
News11 hours ago
Church same-sex split affecting bishop appointments
-
Politics2 days ago
Trump says he will meet with Indian Prime Minister Narendra Modi next week
-
Science & Environment12 hours ago
Physicists have worked out how to melt any material
-
Politics24 hours ago
Keir Starmer facing flashpoints with the trade unions
-
CryptoCurrency2 days ago
Bitcoin reclaims $60K and ‘this time is different,’ says analyst
-
Technology10 hours ago
Fivetran targets data security by adding Hybrid Deployment
-
News2 days ago
Why is XRP price up today?
-
Science & Environment1 day ago
Elon Musk’s SpaceX contracted to destroy retired space station
-
Science & Environment2 days ago
Our reality seems to be compatible with a quantum multiverse
-
Money1 day ago
What estate agents get up to in your home – and how they’re being caught
-
News9 hours ago
Freed Between the Lines: Banned Books Week
-
Technology3 days ago
Musician charged with using bots to boost streaming revenue
-
Sport9 hours ago
UFC’s Dan Ige feels confident after Diego Lopes dominates Brian Ortega
-
News3 days ago
Story Behind Ryan Murphy’s FX Show About Aaron Hernandez
-
Science & Environment12 hours ago
The physicist searching for quantum gravity in gravitational rainbows
-
Technology1 day ago
Tech Life: The tech that refuses to die
-
Football9 hours ago
Football Daily
You must be logged in to post a comment Login