The UK has marked a significant milestone in cryptocurrency regulation with its first criminal sentencing for unregistered crypto activity. Olumide Osunkoya received a four-year prison sentence for operating illegal cryptocurrency ATMs, setting a precedent for future enforcement.
Deliberate Defiance Leads to Landmark Sentence
Osunkoya illegally ran a network of crypto ATMs across 28 locations through his company, GidiPlus Ltd. His operations processed £2.6 million ($3.14 million) between December 2021 and March 2022 without required regulatory approval.
Judge Gregory Perrins emphasised the severity of Osunkoya’s actions during sentencing at Southwark Crown Court in London. “Your decision to continue to operate illegally was an act of deliberate and calculated defiance to the regulator,” Perrins stated. “It cannot be said that it is a mere regulatory breach.”
Elaborate Scheme to Evade Detection
After initial scrutiny, Osunkoya transferred machines from GidiPlus to operate them personally. He created a fake identity and established a shell company to continue running up to 12 machines while avoiding regulatory oversight.
Furthermore, Osunkoya forged four bank statements to pass source of wealth checks at a crypto exchange. The Financial Conduct Authority (FCA) found he failed to implement measures preventing money laundering through his machines.
Regulatory Crackdown Gains Momentum
The sentencing follows an aggressive 2023 FCA campaign targeting illegal crypto ATMs nationwide. In coordination with local police, the regulator visited 38 locations and dismantled 30 machines during the operation.
These efforts have dramatically reduced the crypto ATM footprint in the UK. According to Coin ATM Radar, the number of advertised crypto ATMs dropped from 80 in 2022 to zero this year.
Global Ripple Effects on Crypto Infrastructure
Meanwhile, the global crypto ATM network recently experienced significant contraction. Approximately 1,233 machines went offline worldwide, with 1,100 shutdowns occurring in the United States alone.
This decline coincided with proposed legislation from Illinois Senator Dick Durbin targeting crypto ATM fraud. Despite the recent disruption, the global crypto ATM count stands at approximately 37,226 active machines, with the US hosting 29,731 terminals.
Regulatory Pressure Intensifies Across Markets
Therese Chambers, joint executive director of enforcement at the FCA, delivered a stern warning following Osunkoya’s sentencing. “This sends a clear message: those who flout our rules, seek to evade detection and engage in criminal activity will face serious consequences.”
The successful prosecution signals intensifying regulatory pressure on cryptocurrency infrastructure. Many Bitcoin ATMs currently operate in legal grey areas, prompting operators to either adopt more rigorous compliance measures or cease operations entirely.
Future Outlook for Digital Cash Access
Despite the crackdown, industry observers anticipate evolution rather than elimination of crypto access points. The regulatory pressure may spur innovation toward more compliant solutions, including bank-integrated cryptocurrency services and enhanced mobile payment options.
However, the FCA maintains its cautious stance on cryptocurrencies. “The FCA continues to warn people that if you buy crypto, you should be prepared to lose all your money,” the regulator stated, adding that “crypto remains largely unregulated in the UK and is high risk.”
As regulations tighten globally, cryptocurrency infrastructure faces a critical transition period. The industry must balance innovation with compliance to ensure sustainable growth and mainstream adoption.
