A man from London is the first in the UK to face charges related to running an unlicensed Bitcoin ATM. After a search of a Chatham electronics store by the Kent Police on April 28, 2023, Habibur Rahman, 37, of Langdon Crescent, East Ham, was taken into custody.
Lack of Proper Registration
Police accused Rahman of operating the automated tellers without the required registration from the regulator. The machines were seized during the inquiry, which was overseen by the Financial Conduct Authority (FCA). One of these machines was clearly visible to the public, according to authorities.
Charges and Court Proceedings
This is the first case of its kind to be brought before a court in the United Kingdom. In addition to running the Bitcoin ATM without the proper paperwork, Rahman is now facing charges of laundering £300,000 in illicit funds by turning them into cryptocurrencies. He is expected to appear before the Medway Magistrates’ Court on October 10, 2024, to address the allegations. Rahman has been freed on bail.
Regulatory Statements
The financial watchdog highlighted the dangers of unregistered crypto ATMs and has become more involved in overseeing and controlling the crypto industry. Matthew Long, the authority’s Director of Payments and Digital Assets, cautioned customers and added that regulators and law enforcement, including the Kent Police, work together all the time to keep customers safe and the financial markets fair. The lack of clear regulations in the digital asset industry leaves consumers vulnerable to economic damage, which Long identified as one of the larger hazards of investing in digital assets.
This case emphasizes the importance of complying with regulatory requirements in the digital asset industry and shows how serious the consequences can be for their violation.
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