UK Police Charge Shop Owner Over Unregistered Bitcoin ATM

The UK police charged Habibur Rahman, 37, from East Ham, London, on August 28 with operating unregistered crypto ATMs and laundering thousands of pounds. ,

The landmark event marks the UK’s first prosecution for crypto ATM operations, signaling an important step in the country’s efforts to combat illegal digital asset activities.

UK Man Charged for Running Illegal Crypto ATM

Rahman’s arrest came in 2023, following a police raid on an electronics shop in Chatham, Kent, where multiple crypto ATMs were seized.

A mobile shop owner has become the first person in the UK to be charged with illegally operating a crypto ATM.

Habibur Rahman, 37, allegedly laundered £300,000 of criminal cash by converting it into cryptocurrency.

Kent Police searched Rahman's Gadcet shop in Chatham, Kent, on…

— MrBounceBack.com (@Bounce_BackLoan) August 29, 2024

Crypto ATMs, once popular in the UK, have been under scrutiny since the Financial Conduct Authority (FCA) banned them in 2022, warning machine operators to “shut their machines down” or “face enforcement action.”

The outright ban sought to ensure the operators were duly registered with the regulatory agency. Instead, the ban and sustained crackdown have greatly reduced the number of Bitcoin machines in the country.

🚨 BREAKING: 🇬🇧 UK FCA SHUTS DOWN 26 #CRYPTO ATMs 😳

You won't BELIEVE what they found 😱

A thread 🧵 pic.twitter.com/qRISjmDn7R

— Keyur Rohit (@CryptoKingKeyur) July 12, 2023

According to Coin ATM Radar, the UK had 81 operational crypto ATMs as of March 2022.

However, none are currently listed on the platform.

Rahman has been charged with operating an unregistered crypto ATM and laundering £300,000 ($395,000) in criminal proceeds through cryptocurrency conversion.

Authorities suspect this operation is often linked to illegal activities, including money laundering and fraud. Rahman is out on bail and scheduled to appear in court on October 10.

Crackdown on Crypto ATMs

The case against Rahman is part of a larger global effort to regulate and crack down on the illegal use of crypto ATMs.

According to research by crypto analyst TRM Labs, the cash-to-crypto industry, which primarily operates through these machines, has processed at least $160 million in illicit volumes since 2019. This has prompted law enforcement agencies worldwide to take action.

TRM Labs: $160M in illicit transactions through crypto ATMs since 2019

The cash-to-crypto industry, primarily driven by crypto ATMs, has processed at least $160 million in illicit transactions since 2019, CoinDesk reported, citing a study by blockchain analytics firm TRM Labs.…

— CoinNess Global (@CoinnessGL) August 29, 2024

While the UK has effectively stamped out the crypto ATM industry, other regions are seeing a surge in their numbers.

For instance, in Australia, the number of crypto ATMs has skyrocketed by 1,700% in the past two years. Crypto News reported in April that Australia has over 1,000 machines, representing about 2.7% of the global crypto ATM distribution.

Meanwhile, countries like Germany are taking proactive measures to regulate the sector and crack down on illicit activities.

On August 20, German authorities confiscated 13 crypto ATMs and €250,000 (approximately $279,000)in a targeted operation against illegal cryptocurrency activities.

FCA’s Director of Payments and Digital Assets, Matthew Long, warned that users could unknowingly hand their money to criminals since they are not registered with the agency.

“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,” Long said.

As the October 10 court date approaches, the case against Rahman will likely serve as a warning to others operating unregistered crypto ATMs in the UK.