Lawrence Damilola
Habibur Rahman, a London resident, has pleaded not guilty to charges of operating illegal and unregistered crypto ATMs. Rahman, aged 37, from Langdon Crescent in East Ham, is accused of running a cryptocurrency ATM at his shop without the required registration from the Financial Conduct Authority (FCA). The charges come after several illegal ATMs were seized during a police raid on his store in Chatham, Kent, in April 2023, including one machine on public display.
A spokesperson for Kent Police stated that Rahman is the first person in the UK to face charges for this offense. The authorities revealed that he laundered £300,000 ($391,551) by converting it into cryptocurrency. Rahman appeared in Medway Magistrates’ Court, where he pleaded not guilty to all charges. The case has been moved to Maidstone Crown Court, with the next hearing scheduled for November 7.
In addition to operating unregistered crypto ATMs, Rahman has been accused of money laundering. The authorities allege that he converted large sums of money into cryptocurrency, violating financial regulations. Kent Police are investigating Rahman’s involvement in these activities, and they noted potential violations of money laundering laws.
FCA’s Regulation of Crypto ATMs
Since 2020, the FCA has required all cryptocurrency operators to register with the regulator. Rahman’s case follows growing scrutiny of crypto ATMs across the UK. The FCA has not yet approved any operators of crypto ATMs in the country, making unregistered operations illegal. Last month, London-based trader Olumide Osunkoya was sentenced for operating 11 illegal crypto ATMs, processing over £2.6 million ($3.4 million) in transactions between 2021 and 2023.
The FCA has increased its inspections of locations hosting cryptocurrency ATMs. Between January and August 2023, the regulator inspected 34 such sites. The FCA has stated that registration is mandatory for anyone operating a crypto ATM in the UK, regardless of where the machine is manufactured. Failure to register could result in a prison sentence of up to two years, a fine, or both.
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Lawrence does not hold any crypto asset. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
