London man faces charges for unregistered Bitcoin ATM operation

A London resident, Habibur Rahman, has become the first individual in the UK to be charged with operating a Bitcoin (CRYPTO:BTC) ATM without proper registration.

Rahman, 37, from Langdon Crescent, East Ham, was arrested on April 28, 2023, during a raid by Kent Police at a gadget shop in Chatham, known as Gadcet.

The raid, conducted under the supervision of the Financial Conduct Authority (FCA), revealed several unregistered crypto ATMs at the location, including one that was prominently displayed for public use.

The FCA’s investigation led to the seizure of these machines, as Rahman is suspected of operating them without the necessary registration from the regulator.

This case marks the first time such charges have been brought before UK courts.

Rahman is also accused of laundering £300,000 by converting illicit funds into cryptocurrency.

He has been released on bail and is scheduled to appear before Medway Magistrates’ Court on October 10, 2024, to face these charges.

The FCA, which has been ramping up its oversight of the cryptocurrency sector, issued a warning to consumers regarding unregistered crypto ATMs.

Matthew Long, Director of Payments and Digital Assets at the FCA, stated, “There are currently no crypto ATMs registered with the FCA – so if you’re using one of these machines, you could be handing your money to criminals.”

Long emphasised the need for vigilance and reiterated the regulator's commitment to collaborating with law enforcement agencies like Kent Police to safeguard consumers and maintain market integrity.

Long further highlighted the broader risks associated with digital asset investments, noting that the sector remains largely unregulated.

“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.

This arrest is part of the FCA's broader crackdown on illegal crypto operations in the UK.

In a coordinated effort with other law enforcement agencies, the FCA inspected 18 sites across the UK suspected of operating unregistered crypto ATMs between May and June 2023, resulting in the shutdown of 26 illegal machines.

At the time of reporting, the Bitcoin price was $57,520.95.