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UK hands down first criminal sentence over illegal crypto ATMs

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Olumide Osunkoya, the first person in the UK to be sentenced for operating illegal crypto ATMs, has been handed a four-year prison term. Osunkoya ran a network of unregistered crypto ATMs from December 2021 to March 2022, processing around $3.14 million. He avoided detection by transferring the machines to his personal name and even attempted to launder money through the operation. The Financial Conduct Authority (FCA) uncovered the scheme after an investigation that included the seizure of 30 machines in 2023.

The sentencing has been hailed as a landmark decision by the FCA, with Therese Chambers, its executive director, stating that it sends a strong warning to others engaging in similar unlawful activities. Osunkoya had not only run unregistered ATMs but also falsified documents to bypass anti-money laundering checks and possessed criminal property obtained from his illegal business activities. The authorities emphasized the high risks of dealing in crypto, which remains largely unregulated in the UK.

Osunkoya’s case comes amid broader efforts by UK regulators to crack down on illegal crypto operations. In 2023, the FCA, in collaboration with local police, conducted a nationwide sweep of unregistered crypto ATMs, resulting in the closure of many machines across the country. The regulator has been vigilant in ensuring crypto businesses comply with the necessary registration processes and in protecting consumers from potential fraud and illegal activities.

The FCA’s crackdown reflects growing concerns over the regulation of cryptocurrencies in the UK. Despite its decentralized nature, crypto continues to present regulatory challenges, especially regarding money laundering and fraud. Osunkoya’s case underscores the importance of compliance within the crypto industry and serves as a cautionary tale for those operating outside the legal framework.

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7-Eleven South Korea to accept CBDC payments in national pilot program

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7-Eleven is set to participate in the testing phase of a central bank digital currency (CBDC) initiative, running from April to June. The retail giant’s involvement highlights the growing push for digital currency integration in everyday transactions.

The pilot program will assess the feasibility of CBDC payments at 7-Eleven stores, allowing customers to make purchases using the digital currency. The initiative is part of a broader effort to explore the real-world application of CBDCs in retail environments, potentially shaping future payment systems.

As central banks worldwide accelerate their digital currency research, private sector collaboration is seen as crucial for widespread adoption. If successful, 7-Eleven’s participation could pave the way for broader CBDC usage across retail and commercial sectors.

The outcome of the testing phase will provide valuable insights into consumer adoption, transaction efficiency, and potential regulatory considerations, influencing how CBDCs are integrated into mainstream financial systems.

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SEC and Gemini ask to pause lawsuit to explore ‘potential resolution’

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The U.S. Securities and Exchange Commission (SEC) and crypto exchange Gemini have agreed to pause legal proceedings as both sides explore a potential resolution to their ongoing lawsuit. The move signals a possible settlement in the high-profile case, which centers around Gemini’s now-defunct Earn program.

The SEC initially sued Gemini, alleging that the Earn program—designed to offer users yield on crypto deposits—operated as an unregistered securities offering. Gemini has pushed back against the claims, arguing that its operations complied with regulatory standards.

By pausing litigation, both parties may be looking for a compromise that could set a precedent for crypto lending products in the U.S. A settlement could also provide regulatory clarity for similar platforms navigating SEC scrutiny.

While the outcome remains uncertain, the crypto industry is closely watching the case, as its resolution could impact future enforcement actions and the broader regulatory approach toward digital asset lending services.

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GameStop finishes $1.5B raise to add Bitcoin to its balance sheet

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GameStop has successfully completed a debt offering, raising capital that may be used to acquire Bitcoin, signaling the company’s deeper foray into digital assets. The move aligns with its broader strategy to diversify beyond traditional retail operations and into emerging financial technologies.

While GameStop has not confirmed the exact allocation of the funds, market speculation suggests that a portion could be used to buy Bitcoin, following in the footsteps of companies like MicroStrategy. The potential investment would reinforce GameStop’s ongoing pivot toward blockchain and digital assets, an effort that began with its NFT marketplace and crypto-related initiatives.

Analysts see this development as part of a growing trend of corporations exploring Bitcoin as a reserve asset amid concerns over inflation and monetary policy. If GameStop proceeds with the acquisition, it could further validate Bitcoin’s role as a strategic investment for publicly traded companies.

The company’s board will ultimately decide how the newly raised capital is deployed. Investors and the broader crypto market are watching closely for any official announcements regarding GameStop’s Bitcoin strategy.

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