In a groundbreaking turn of events, a London resident named Habibur Rahman has found himself in legal trouble for operating a Bitcoin ATM without the proper registration. Rahman, who resides in Langdon Crescent, East Ham, was taken into custody following a raid by Kent Police at a gadget shop in Chatham on April 28, 2023. The outlet in question, Gadcet, housed several crypto ATMs, with one of them openly displayed for public use.
The Consequences of Unregistered Bitcoin ATMs
The investigation conducted by the Financial Conduct Authority (FCA) resulted in the seizure of these machines, with Rahman being suspected of running the ATMs without the required registration. This particular charge is significant as it sets a precedent for future cases involving unregistered crypto ATMs. Additionally, Rahman is also facing allegations of laundering £300,000 in illegal funds through the conversion of money into cryptocurrency.
Warnings from Financial Authorities
The Director of Payments and Digital Assets at the FCA, Matthew Long, issued a cautionary statement to consumers regarding the risks associated with unregistered crypto ATMs. Long emphasized that currently, there are no crypto ATMs registered with the FCA, and using such machines could potentially expose individuals to criminal activities. He stressed the importance of collaboration between regulatory bodies and law enforcement agencies to safeguard consumers and maintain the integrity of financial markets.
Long also highlighted the broader risks linked to digital asset investments, citing the lack of clear guidelines as a significant factor contributing to potential economic harm for users. He warned individuals that the crypto sector remains largely unregulated and high risk, advising caution when engaging in crypto transactions. The message from the FCA is clear: investing in cryptocurrency comes with significant risks, including the possibility of losing all funds.
The recent arrest of Habibur Rahman is part of the FCA’s continued efforts to combat the proliferation of unregistered crypto ATMs. A previous press release from the regulator revealed that 18 sites suspected of operating illegal machines were inspected during May and June 2023, leading to the closure of 26 unauthorized kiosks in a coordinated operation with law enforcement agencies across the UK. The crackdown on unregistered Bitcoin ATMs underscores the FCA’s commitment to ensuring compliance with regulations and protecting consumers in the rapidly evolving cryptocurrency landscape.