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<p style="font-weight: 400;">With a breakthrough in legal battles, FCA obtained its first legal victory in the country, outlawing unauthorized crypto ATMs. This case, based on Olumide Osunkoya, also outlines some major concerns regarding the regulation of cryptocurrencies. Having not been registered with FCA, Osunkoya engaged in the illicit business of crypto ATMs and processed over £2.6m worth of transactions within the period of 2021 to 2023. This case is the first of its kind prosecuted under the anti-money laundering legislation of the United Kingdom but should pave the way for other similar cases.</p> 
<p style="font-weight: 400;">On Monday, the FCA revealed Osunkoya’s guilty plea and said that his conviction is significant to the efforts being made to uphold the legal requirements concerning cryptocurrencies. This case emerged following the realisation that Osunkoya’s network of 11 crypto ATMs was running affairs illicitly even after the FCA denied him accreditation in 2021.</p> 
<h2 style="font-weight: 400;" id="strong-the-2-6-million-crypto-atm-operation-strong"><strong>The £2.6 Million Crypto ATM Operation&nbsp;</strong></h2> 
<p style="font-weight: 400;">The kingpin of the Igalawa gang, Chukwudumeme Onsonye Osunkoya, who operated an array of clandestine crypto ATMs in convenience stores across the United Kingdom “handled more than £2.6 million ($3.5 million) in cryptocurrencies over two years,”. His operations commenced on December 29, 2021, and ended on September 8, 2023, despite the fact that he had not been registered with the FCA.</p> 
<p style="font-weight: 400;">During the hearing at Westminster Magistrates’ Court, the FCA stated that Osunkoya had not conducted any customer identification or carried out adequate source of funds checks contrary to the UK’s anti-money laundering regulations. The FCA stated that a lot of its people who have invested in the crypto ATM operated under Osunkoya, engaged in some illicit activities such as tax evasion and money laundering.</p> 
<figure id="attachment_47537" aria-describedby="caption-attachment-47537" style="width: 100%" class="wp-caption aligncenter">
 <img loading="lazy" loading="lazy" decoding="async" class="wp-image-47537 size-full" src="https://thebitjournal.b-cdn.net/wp-content/uploads/2024/10/DALL·E-2024-10-01-12.26.46-A-symbolic-landscape-image-representing-a-crypto-ATM-fraud-case.-The-scene-features-a-dimly-lit-alley-where-an-abandoned-ATM-machine-is-surrounded-by-.webp" alt="UK's First Illegal Crypto ATM Conviction" width="1792" height="1024" title="UK’s First Crypto ATM Fraud Case Ends in 14-Year Sentence 10">
 <figcaption id="caption-attachment-47537" class="wp-caption-text">
  UK’s First Illegal Crypto ATM Conviction
 </figcaption>
</figure> 
<p>&nbsp;</p> 
<p style="font-weight: 400;">Another of the summarised allegations was that Osunkoya deliberately avoided proper financial control. ”Even though the FCA turned down his application for registration in 2021, Mr Osunkoya never ceased adding more crypto ATMs across the UK while failing to do his due diligence,” FCA confirmed. This was a gravely launched significant prosecution because of his ignorance of compliance measures.</p> 
<h2 style="font-weight: 400;" id="strong-legal-consequences-and-sentencing-strong"><strong>Legal Consequences and Sentencing&nbsp;</strong></h2> 
<p style="font-weight: 400;">The use of unregistered **crypto ATMs** in the UK is against its anti-money laundering laws that seek to fight unlawful operations within the emerging market of cryptocurrency. As per the FCA, not only was Osunkoya practising without registration, but it also committed other crimes, in its case, forging documents. They are charged with forging business records and giving out false information to the authorities.</p> 
<p style="font-weight: 400;">Osunkoya was also charged with the offence which relates to the possession of criminal property in the sum of £19,540, believed to be proceeds of the unlawful crypto ATM business. Also, he tried to mislead the police by claiming to have sold his crypto ATM business to a phantom buyer.</p> 
<p style="font-weight: 400;">“This case clearly warns those engaging in business unlawfully in the crypto space. Currently, there is no legal use of crypto ATMs in the United Kingdom, and anyone engaging in this practice violates the law,” the FCA announced in its press release.</p> 
<h2 style="font-weight: 400;" id="strong-fca-s-commitment-to-crypto-regulation-strong"><strong>FCA’s Commitment to Crypto Regulation&nbsp;</strong></h2> 
<p style="font-weight: 400;">The conviction is a big win for the FCA in its fight against the trade, circulation and utilization of cryptocurrencies in the UK. However, with the increased embracing of cryptocurrencies, there has been a rise in calls for increased regulation to help counter its use in the commission of crimes. Despite implementing several measures to prevent money laundering and tax evasion through digital currencies, the UK continues to face the challenge of keeping up with new technologies.</p> 
<p style="font-weight: 400;">The FCA spokesperson also said, “This is the first UK conviction of its kind for offences concerning the use of crypto ATM It reminds to follow our registration procedure and possible consequences in case of unauthorized actions.”</p> 
<p style="font-weight: 400;">To date, no companies have legally operated legally registered crypto ATMs within the UK. FCA is still probing other cases of illegality in the crypto market as part of its general strategy to establish the soundness of British financial structures.</p> 
<figure id="attachment_47538" aria-describedby="caption-attachment-47538" style="width: 100%" class="wp-caption aligncenter">
 <img loading="lazy" loading="lazy" decoding="async" class="wp-image-47538 size-full" src="https://thebitjournal.b-cdn.net/wp-content/uploads/2024/10/DALL·E-2024-10-01-12.26.50-A-dramatic-landscape-image-portraying-a-crypto-ATM-fraud-case.-The-scene-shows-a-dim-street-corner-with-a-malfunctioning-ATM-displaying-cryptocurrency.webp" alt="UK's First Illegal Crypto ATM Conviction" width="1792" height="1024" title="UK’s First Crypto ATM Fraud Case Ends in 14-Year Sentence 11">
 <figcaption id="caption-attachment-47538" class="wp-caption-text">
  UK’s First Illegal Crypto ATM Conviction
 </figcaption>
</figure> 
<h2 style="font-weight: 400;" id="strong-conclusion-strong"><strong>Conclusion</strong></h2> 
<p style="font-weight: 400;">This case of Olumide Osunkoya is still considered a historical moment in the regulation of cryptocurrencies in the United Kingdom as the defendant was, for the first time, prosecuted for running an illicit crypto ATM. Given that the FCA has given a black-and-white stance to unregistered operations, this particular case is a clear-cut victory towards future enforcement in the increasingly complicated area of digital currencies.</p> 
<p style="font-weight: 400;">While Osunkoya waits for his or her sentencing, the conviction remains a reminder of the fact that regulatory bodies are stepping up their efforts to eradicate the use of digital assets in criminal activities. Such an outcome, typical for the FCA, proves the organization’s dedication to maintaining the financial system and the legal framework of the United Kingdom in the era of digitalization. Keep following <a href="https://thebitjournal.com/">TheBITJournal</a> and keep an eye on crypto updates.</p> 
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UK’s First Crypto ATM Fraud Case Ends in 14-Year Sentence

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