A 37-year-old Londoner has become the first person in the UK to be charged with running an unregistered bitcoin ATM. He is also accused of laundering £300,000.
Illegal Bitcoin ATM and Money Laundering
Habibur Rahman, a 37-year-old from London, was arrested on April 28, 2023. Details are only now being learned.
The reason Rahman was detained? According to law enforcement, there were several of his bitcoin ATMs on High Street, including one that was on public display. The problem was that the devices were operating without a permit from the authorities.
The investigation, which was conducted under the supervision of the Financial Conduct Authority (FCA), led to the seizure of bitcoin ATMs. The charge brought against the man – running a bitcoin ATM network without the consent of the authorities – is significant because it is the first case of such a crime brought by the British prosecutor’s office.
In addition to the above, Rahman is also accused of laundering £300,000 of criminal proceeds by using bitcoin ATMs to convert the funds into cryptocurrencies.
The most interested party, as I mentioned, was arrested. He has now been released on bail and is due to appear before Medway District Court on 10 October 2024 to answer the charges brought against him.
FCA goes to war
The UK Financial Services Authority is taking aim at the cryptocurrency market, with Matthew Long, the agency’s director of payments and digital assets, even issuing a warning to consumers:
There are currently no Bitcoin ATMs registered with the FCA – so if you use one of these devices, you could be handing your money over to criminals.
He also noted that the regulator continually works with law enforcement agencies such as Kent Police to protect consumers.
In his announcement, Long also highlighted the broader risks of investing in digital assets, noting that the sector is still not fully regulated. As a result, users could lose money if they invest in cryptocurrencies.
We continue to remind people that cryptocurrencies remain largely unregulated and high risk; if you buy them, you should be prepared to lose all your money
— he added.
It’s a pity he didn’t mention that the lack of regulation should be blamed not on the industry but on politicians and officials.
In an earlier press release, the regulator also revealed that in May and June 2023, 18 locations in the UK where illegal bitcoin ATMs were allegedly located were inspected, resulting in the seizure of 26 such devices.
