London Man Becomes First In UK To Face Charges For Operating Unregistered Bitcoin ATM

A London resident has become the first person in the UK to be charged with operating a Bitcoin ATM without proper registration.

Habibur Rahman, 37, of Langdon Crescent, East Ham, was arrested on April 28, 2023, following a raid by Kent Police at a gadget shop in Chatham.

Medway trader faces £300,000 money laundering charges

According to the law enforcement agency, the Gadcet outlet, located on Main Street, was found to have several crypto ATMs, including one that was prominently displayed for public use.

The investigation, which was conducted under the supervision of the Financial Conduct Authority (FCA), led to the seizure of these machines, with police suspecting that Rahman was operating the ATMs without the required registration from the regulator.

This charge is significant as it marks the first instance of such an offense being brought before UK courts.

As well as the unregistered Bitcoin ATM operation, Rahman is also accused of laundering £300,000 in criminal proceeds by converting the money into cryptocurrency.

He has been released on bail and is scheduled to appear at Medway Magistrates’ Court on 10 October 2024 to answer the charges.

FCA issues a notice

The financial watchdog, which has been increasingly active in monitoring and regulating the cryptocurrency sector, emphasized the risks associated with unregistered crypto ATMs.

Matthew Long, director of payments and digital assets at the authority, issued a warning to consumers: “There are currently no crypto ATMs registered with the FCA, so if you use one of these machines, you could be handing over the your money to criminals”.

He also noted the regulator’s ongoing collaboration with law enforcement agencies, such as Kent Police, to protect consumers and ensure the integrity of financial markets.

Long also highlighted the broader risks associated with investments in digital assets, noting that the sector remains without clear guidelines and as such users may be susceptible to financial harm.

“We continue to remind people that crypto remains largely unregulated and high risk; if you buy it, you should be prepared to lose all your money,” he added.

The latest arrest marks a continuation of the FCA’s ongoing crackdown on crypto ATMs.

In an earlier press release, the regulator revealed that during May and June 2023, 18 UK sites suspected of operating these machines were inspected, leading to the shutdown of 26 illegal kiosks in a coordinated operation with other law enforcement agencies.

SPECIAL OFFER (Sponsored) Binance Free $600 (Exclusive to CryptoPotato): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

2024 LIMITED OFFER on BYDFi Exchange – Up to $2888 Welcome Reward, Use this link to register and open a 100 USDT-M position for free!