A London resident, Habibur Rahman, has made history by becoming the first person in the UK to face charges for operating a Bitcoin ATM without proper registration. Rahman was arrested on April 28, 2023, following a raid at a gadget shop in Chatham, where multiple crypto ATMs were located, including one for public use. The investigation, supervised by the Financial Conduct Authority (FCA), resulted in the seizure of these machines, with police suspecting Rahman of running them without the necessary approval from the regulator.
Accusations Against Rahman
Apart from the unregistered operation of the Bitcoin ATMs, Rahman is also accused of laundering £300,000 in criminal proceeds by converting the money into cryptocurrency. He has been granted bail and is set to appear before Medway Magistrates’ Court on October 10, 2024, to face these charges. The seriousness of these allegations highlights the growing concern over unregistered crypto ATMs and their potential involvement in illegal activities.
Warning from Financial Watchdog
Matthew Long, the Director of Payments and Digital Assets at the FCA, issued a stern warning to consumers about the risks associated with unregistered crypto ATMs. He emphasized that no crypto ATMs are currently registered with the FCA, meaning users could unknowingly be facilitating criminal activities by utilizing these machines. Long underscored the collaboration between the FCA and law enforcement agencies like Kent Police to safeguard consumers and maintain the financial market’s integrity.
Long also highlighted the broader risks associated with digital asset investments, noting the lack of clear regulations in the sector. He cautioned users about the high-risk nature of cryptocurrency investments, stating that individuals should be prepared to lose all their money when engaging in such transactions. The FCA’s focus on educating the public about these risks signifies its commitment to protecting consumers from financial harm in the volatile cryptocurrency market.
The recent arrest of Rahman is part of the FCA’s ongoing efforts to crack down on unregistered crypto ATMs. In a previous announcement, the regulatory body revealed that 18 sites suspected of operating illegal Bitcoin ATMs were inspected, resulting in the closure of 26 unauthorized kiosks across the UK. This coordinated operation with law enforcement agencies demonstrates the collective commitment to combating illicit activities in the cryptocurrency space and ensuring compliance with regulatory requirements.