Trader Denies Operating Illegal Crypto ATMs by Bill Alpert
A trader in London, Habibur Rahman, has denied any wrongdoing in terms of running illicit cryptocurrency ATMs and money laundering. Rahman, from East Ham, was alleged to have failed to register his machines with the Financial Conduct Authority, the FCA-a requirement needed for crypto ATM operators in the United Kingdom. He is said by the prosecution to have laundered £300,000 by converting the money into cryptocurrency.
Crypto Machines Seized in Raid
In April 2023, a raid was conducted at Rahman’s shop in Chatham, Kent. Police found and seized several crypto ATMs, including one that was publicly accessible. Police say that Rahman is the first person in the UK charged with operating an unregistered cryptocurrency ATM.
A spokesman for Kent Police said that Rahman’s arrest underlines the growing concern over unregulated crypto operations. The police believed these machines were part of a wider illicit financial scheme that evaded controls on regulated money and therefore posed a risk to financial security.
Court Hearing and Alleged Money Laundering
The 37-year-old appeared at Medway Magistrates’ Court, where he formally entered a plea of not guilty. The case has since been referred to Maidstone Crown Court and will next be heard on November 7, 2024. Rahman is charged on several counts, which include contravening the financial regulations set by the FCA and money laundering through crypto transactions.
If convicted, Rahman faces a possible substantial imprisonment sentence or substantial fines. This case has made headlines because it underlines an ever-tightening screw on crypto-related activities in the UK, majorly regarding unregistered crypto ATMs and the possibility of money laundering.
FCA’s Regulatory Clampdown on Crypto ATMs
It initiated strict regulations in 2020, which meant crypto operators had to register themselves with this authority to combat money laundering and financial crimes. No crypto ATM operator has been approved by the FCA until now to operate legally within the UK.
The FCA has been conducting probes in areas suspected of harboring unlicensed crypto ATMs. It has so far visited at least 34 sites this year. Those found operating without proper registration risk up to two years in prison or face heavy fines-a sure determinant of how seriously the FCA takes the proliferation of unlicensed crypto activities.
