A London man has become the first to be charged with operating an unregistered Bitcoin ATM in the UK

A London resident has become the first person in the UK to open a Bitcoin ATM operating system without proper registration.

Habibur Rahman, 37, of Langdon Crescent, Eastham, was arrested on 28 April 2023 following a raid by Kent Police at a Chatham gadget shop.

A Medway businessman has been charged with embezzling £300,000.

According to the law enforcement agency, the Gadset outlet on High Street is known to have a number of crypto ATMs, one of which is prominently displayed for public use.

An investigation by the Financial Conduct Authority (FCA) led to the seizure of these machines, and police suspected Rahman of operating automated techniques without obtaining the necessary registration from the regulator.

This is significant as it marks the first time a case has come before the UK courts.

In addition to the unregistered Bitcoin ATM operation, Rahman was charged with laundering £300,000 of criminal proceeds by converting the money into cryptocurrency.

He was released on bail and scheduled to appear at Medway Magistrates' Court on October 10, 2024.

FCA issues warning

The financial regulator, which is actively involved in monitoring and regulating the cryptocurrency ATM sector, has emphasized the risks associated with unregistered crypto ATMs.

Matthew Long, the authority's director of payments and digital assets, warned consumers: “There are currently no crypto ATMs registered with the FCA – so if you use one of these machines, you can give your money to consumers.” “Criminals.”

He also pointed out that the regulator is working with law enforcement agencies such as Kent Police to protect consumers and ensure the integrity of the financial markets.

Long also highlighted the wide-ranging risks associated with digital asset investments, suggesting that the sector will continue to lack clear guidance, leaving consumers vulnerable to economic harm.

“We continue to remind people that crypto is largely unregulated and remains high risk; if you buy it, you should be prepared to lose all your money,” he added.

The latest arrest follows the FCA's ongoing crackdown on crypto ATMs.

In an earlier press release, the regulator said it inspected 18 sites suspected of operating such machines in the UK between May and June 2023 and shut down 26 illegal kiosks in a joint operation with other law enforcement agencies.