UK’s FCA Charges GidiPlus Director for Operating Illegal Crypto ATM Network
Extensive Crypto Transactions and Regulatory Breaches
According to the FCA, between December 29, 2021, and September 8, 2023, Osunkoya’s network facilitated crypto transactions amounting to £2.6 million. The charges against him include two counts of violating the UK’s Money Laundering Regulations (MLRs) and additional offenses under the Forgery and Counterfeiting Act 1981 for the creation and use of false documents. Furthermore, he faces one count of possession of criminal property under the Proceeds of Crime Act 2002.
Therese Chambers, the FCA’s Joint Executive Director of Enforcement and Market Oversight, sternly warned, “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.”
Previous Arrests and the Legal Status of Crypto ATMs in the UK
Osunkoya’s company, GidiPlus, attempted to legalize its operations by applying for registration as a crypto asset exchange provider in November 2021. However, the application was denied, and a subsequent appeal in December was unsuccessful.
As of now, there are no legally operating crypto ATMs in the UK. The FCA had mandated the shutdown of all unregistered crypto ATMs in March 2022, emphasizing the regulatory stance against unlicensed crypto operations.
Implications for the Crypto Industry
For further insights into how businesses can navigate the complex regulatory environment in the crypto industry, consider reading about navigating legal challenges in crypto recruitment and the importance of compliance roles in ensuring operational legitimacy.
The ongoing developments in the Osunkoya case will likely serve as a critical reference for both regulatory authorities and crypto businesses striving to align with legal standards and foster a secure and compliant digital asset environment.
