The UK just dropped the regulatory hammer on crypto in a big way, with a court sentencing 46-year-old Olumide Osunkoya to four years behind bars for running illegal Bitcoin ATMs.

It's the first prosecution of its kind in the UK, and regulators are sending a crystal clear message to the industry.

It’s time to get compliant or face the full force of the law.

The ATM Empire

Osunkoya wasn't exactly running a small operation here.

The guy had Bitcoin ATMs scattered across 28 different locations throughout the UK under his company GidiPlus Ltd.

In an act of defiance, Osunkoya has continued to run the machines despite the FCA explicitly denying him registration, taking 30% to 60% per transaction in fees.

That’s borderline highway robbery that would make even centralized exchanges blush… and not exactly a wise move when regulators have explicitly told you not to do that.

Playing Dirty

This wasn't just a case of missing some paperwork or forgetting to check a regulatory box, either – it was genuine fraud on a fundamental level. 

Osunkoya submitted fake bank statements to pass wealth checks, tried to incorporate under a false name, and completely ignored basic anti-money laundering procedures.

Judge Gregory Perrins at Southwark Crown Court wasn't having any of it, making it clear this went far beyond simple regulatory mistakes.

The court is now going after every penny Osunkoya made under the Proceeds of Crime Act 2002 because crime shouldn't pay – especially not in Bitcoin.

This is a defining chapter in the FCA's ongoing, all-out war on unauthorized crypto ATMs.

In 2023 alone, they swept through the streets and yanked 30 machines from 38 locations nationwide.

CoinATMRadar tells the story in numbers: from 80 crypto ATMs advertised in the UK in 2022 to zero in 2024.

The FCA is even maintaining a public hit list of suspected unauthorized ATMs, daring operators to keep them running while the cases are undoubtedly pending.

Days Are Numbered

The UK is clearly no longer taking these sorts of matters lightly, with the FCA demanding full compliance, consumer protection, and strict operational standards.

With this precedent, it shows they're willing to put people in prison to get it.

The days of the Wild West crypto scene in Britain are officially over, and ATM operators are the primary target in this unfolding drama. 

Four years in prison is no slap on the wrist – it's the kind of sentence that makes other operators think twice about trying to skirt the rules.

And the FCA isn't just going after operators but also warning the public about crypto itself.

They're still promoting the same regulatory concerns about volatility, the potential for complete loss, and a lack of protection.

It's the same speech we've been hearing since 2017, just with more teeth now that they've shown they're willing to prosecute.

Foregoing The Crypto Crown?

This case sets a precedent for some aspects of crypto in the UK, and for Bitcoin ATM operators still trying to fly under the radar, the message couldn't be clearer.

It’s probably a good idea to get registered or face arrest – and for the broader crypto industry, it's a wake-up call that the era of ask-forgiveness-not-permission is over.

Compliance officers at UK crypto companies are surely double-checking their paperwork, as what happened to Osunkoya is likely just the beginning.