A trader in London has entered a not-guilty plea in response to accusations that he ran unlicensed and illicit crypto ATMs.
Habibur Rahman used cryptocurrency to launder £300,000 ($391551).
Police say Habibur Rahman, of East Ham’s Langdon Crescent, was accused of operating a crypto ATM at his store without having the Financial Conduct Authority (FCA) registration. A store search in Chatham, Kent, in April 2023 reportedly resulted in the seizure of multiple illicit machines, including one on exhibit for the public.
Rehman was the first person in the UK to be charged with the crime, according to a spokesman for Kent Police. A BBC article stated that he converted the £300,000 ($391551) into cryptocurrency to launder it.
On Thursday, the 37-year-old Rahman pleaded not guilty to the Medway Magistrates’ Court allegations. The matter has been moved to Maidstone Crown Court, and November 7 is when the next hearing is planned.
Rahman’s role in the crime entailed money laundering in addition to breaking banking restrictions, according to Kent police.
Olumide Osunkoya, a London resident, was jailed by the FCA last month for operating many cryptocurrency ATMs without registering and forging fake paperwork. Osunkoya entered a guilty plea to operating a network of at least 11 illicit cryptocurrency ATMs that, between December 2021 and September 2023, handled transactions totaling more than £2.6 million ($3.4 million).
“Under the Money Laundering, Terrorist Financing, and Transfer of Funds Act, the charges represent the FCA’s first criminal prosecution relating to unregistered crypto asset activity,” the regulator stated.
FCA Takes Action Against Crypto ATM Owners
Legislation mandating crypto businesses to register with the regulator was introduced by the FCA in 2020. The FCA has yet to permit cryptocurrency ATM operators to operate in the UK.
According to a representative for the FCA who spoke with Better Retailing, anyone who wants to run a cryptocurrency ATM must register. No matter where the machine is manufactured, this is true.
“Those that operate the machines without FCA registration could face a maximum sentence of two years in prison, or a fine, or both.”
Additionally, the report stated that between January and August 2023, the regulator examined 34 locations that housed Bitcoin ATMs.
