UK Trader Denies Charges In First-ever Illegal Crypto ATM Prosecution

A London trader has pleaded not guilty to operating an illegal crypto ATM business and laundering $395,000 in criminal cash.

Habibur Rahman, a crypto trader from East Ham, London, has pleaded not guilty to charges related to operating an illegal crypto ATM business and laundering £300,000 (around $395,000) in criminal cash.

Rahman was arrested in April 2023 after police searched his mobile phone shop in Chatham, Kent, seizing several crypto ATMs, BBC reports, citing a spokesperson for Kent Police. The FCA mandates that all crypto ATM operators must register with the agency, a requirement that Rahman allegedly ignored.

During his court appearance at Medway Magistrates’ Court, he faced charges of running an unregulated business and illegally converting cash into crypto between April and June 2022. Matthew Long, the FCA’s director of payments and digital assets, reiterated the dangers associated with crypto investments, stating “if you are using one of these machines, you could be handing your money to criminals.”

The FCA has recently expanded its enforcement actions, evident in a separate case involving Olumide Osunkoya, another London trader charged with unlawfully operating multiple crypto ATMs that processed £2.6 million (at the time $3.4 million) in transactions. Subsequently, Osunkoya pleaded guilty to five offenses related to running an illegal network of crypto ATMs, marking the U.K.’s first conviction of its kind.

This case underscores the FCA’s ongoing crackdown on unregistered crypto activities and reflects a broader initiative to enhance regulatory oversight in the cryptocurrency sector. As the risks associated with these operations continue to grow, the FCA appears to be increasingly vigilant in its efforts to protect consumers and maintain financial integrity.