1. Arrest and Charge
2. Crackdown on Illegal Crypto Operations
3. Global Measures Against Illegal Crypto ATMs

A man in the UK was recently arrested and charged with operating illegal cryptocurrency ATMs. This is the first case of its kind in the country.

Arrest and Charge

Habibur Rahman, an electronics shop owner in Chatham, Kent, was arrested following a police raid on his store. Multiple crypto ATMs were seized during the search. Rahman has been charged with operating an unregistered crypto ATM and laundering £300,000 ($395,000) 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 Illegal Crypto Operations

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. This outright ban and ongoing crackdown have significantly reduced the number of Bitcoin machines in the country. According to Coin ATM Radar, the UK had 81 operational crypto ATMs as of March 2022, but none are currently listed on the platform.

Global Measures Against Illegal 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. In Australia, the number of crypto ATMs has skyrocketed by 1,700% in the past two years. In Germany, authorities confiscated 13 crypto ATMs and €250,000 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.

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.