In a groundbreaking move, a London resident named Habibur Rahman has made history by becoming the first person in the UK to face charges for operating a Bitcoin ATM without proper registration. This unprecedented incident took place after a raid by Kent Police at a gadget shop in Chatham on April 28, 2023.
The outlet in question, Gadcet, located on the High Street, was found to have multiple crypto ATMs, one of which was publicly accessible. The Financial Conduct Authority (FCA) supervised the investigation, leading to the confiscation of these machines. Rahman is suspected of operating the Bitcoin ATMs without the required registration, marking a significant violation of financial regulations in the UK.
Aside from the unregistered operation of the Bitcoin ATMs, Rahman is also accused of laundering £300,000 by converting the money into cryptocurrency. These charges have serious implications, emphasizing the dangers associated with unauthorized cryptocurrency transactions. Rahman has been released on bail and is expected to appear before Medway Magistrates’ Court on October 10, 2024.
The FCA, known for its vigilant monitoring and regulation of the cryptocurrency sector, issued a stern warning to consumers regarding unregistered crypto ATMs. Matthew Long, the Director of Payments and Digital Assets at the FCA, cautioned individuals against using such machines, as they could unknowingly be facilitating criminal activities. The regulator stressed its commitment to collaborating with law enforcement agencies like Kent Police to protect consumers and maintain the integrity of financial markets.
High-Risk Nature of Digital Assets
Long also highlighted the broader risks associated with digital asset investments, noting the lack of clear guidelines in the sector. He emphasized the high-risk nature of cryptocurrency investments, advising individuals to be prepared for potential financial losses. The unregulated nature of the cryptocurrency market makes it especially susceptible to fraudulent activities and economic harm, underscoring the importance of caution.
FCA’s Ongoing Crackdown
This recent arrest is part of the FCA’s continued efforts to curb illegal practices related to cryptocurrency ATMs. A previous press release revealed that during May and June 2023, the FCA conducted inspections at 18 sites across the UK suspected of operating unregistered ATMs. This coordinated operation resulted in the closure of 26 illegal kiosks, demonstrating the regulator’s commitment to upholding financial regulations and protecting consumers from potential risks associated with cryptocurrency transactions.
