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London-Based Trader Denies Charges of Operating Illegal Crypto ATMs

FCA

Habibur Rahman laundered £300,000 ($391551) by converting the amount into crypto.

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Sujha Sundararajan

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Sujha Sundararajan

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Last updated:

October 10, 2024

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A London resident trader has pleaded not guilty over allegations of operating illegal and unregistered crypto ATMs.

According to police, Habibur Rahman of Langdon Crescent in East Ham, was charged with running a crypto ATM at his shop without the Financial Conduct Authority’s (FCA) registration. Apparently, several illegal machines were seized during a store raid in Chatham, Kent, in April 2023 including one on public display.

A Kent Police spokesperson noted that Rehman was the first person in the UK to be charged with the offence. Additionally, he also laundered £300,000 ($391551) by converting the amount into crypto, a BBC report revealed.

The 37-year-old Rahman appeared at Medway Magistrates’ Court, pleading not guilty to the charges on Thursday. The case has been transferred to Maidstone Crown Court and the next hearing is scheduled for November 7.

Per Kent police, Rahman’s involvement in the crime not only violated financial regulations but also involved money laundering.

Last month, the FCA sentenced London-based Olumide Osunkoya for running multiple crypto ATMs without registration and creating false documents. Osunkoya pleaded guilty to running a network of at least 11 illegal crypto ATMs that processed more than £2.6 million ($3.4 million) in transactions between December 2021 and September 2023.

“The charges mark the FCA’s first criminal prosecution relating to unregistered cryptoasset activity under the Money Laundering, Terrorist Financing and Transfer of Funds,” the regulator wrote at the time.

FCA Cracks Down on Crypto ATM Operators

In 2020, the FCA introduced a law requiring crypto operators to register with the regulator. Interestingly, the FCA has not approved any crypto ATM operators to function in the UK so far.

An FCA spokesperson told Better Retailing that registration is mandatory for anyone who wishes to operate a crypto ATM. This is regardless of where the machine is made.