In a significant move against illegal digital asset activities, UK police have charged 37-year-old Habibur Rahman of East Ham, London, with operating unregistered cryptocurrency ATMs and laundering thousands of pounds. This marks the UK’s first prosecution related to crypto ATM operations, highlighting the nation’s intensified efforts to regulate the industry.
London Man Charged in UK’s First Illegal Crypto ATM Case
Rahman’s charges stem from a 2023 police raid on an electronics store in Chatham, Kent, where several crypto ATMs were confiscated. These machines, once common across the UK, have come under heavy scrutiny since the Financial Conduct Authority (FCA) banned them in 2022. The FCA’s directive required operators to either shut down their machines or face legal consequences, significantly reducing the number of operational Bitcoin ATMs in the country.
Before the ban, the UK had 81 active crypto ATMs as of March 2022, according to data from Coin ATM Radar. However, the FCA’s enforcement has led to a complete wipeout of these machines from the platform’s listings.
Rahman now faces charges of operating an unregistered crypto ATM and laundering £300,000 (approximately $395,000) through cryptocurrency conversions, with authorities suspecting ties to broader illegal activities such as money laundering and fraud. Rahman has been released on bail and is set to appear in court on October 10.
Global Crackdown on Crypto ATMs
This case is part of a broader global initiative to regulate and suppress illegal use of crypto ATMs. Research from crypto analyst TRM Labs reveals that the cash-to-crypto industry, primarily driven by these machines, has facilitated at least $160 million in illicit transactions since 2019. This alarming trend has prompted law enforcement agencies worldwide to intensify their regulatory efforts.
While the UK has effectively dismantled its crypto ATM industry, other regions have seen a surge in these machines. For example, Australia has witnessed a 1,700% increase in crypto ATMs over the past two years, with over 1,000 machines now in operation, accounting for about 2.7% of the global market.
Conversely, Germany is taking proactive steps to curb illegal activities linked to crypto ATMs. On August 20, German authorities seized 13 crypto ATMs and €250,000 (approximately $279,000) in a targeted operation against unlawful cryptocurrency operations.
Matthew Long, FCA’s Director of Payments and Digital Assets, has cautioned the public about the dangers of using unregistered crypto ATMs, stating, “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.”
As Rahman’s October 10 court date approaches, his case is poised to serve as a stark warning to others operating unregistered crypto ATMs in the UK, underscoring the country’s commitment to clamping down on illegal cryptocurrency activities.
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