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- A London trader has pleaded not guilty to operating an illegal cryptocurrency ATM business after being accused of ignoring a cease order
- Habibur Rahman, from East Ham, has been charged with running a crypto ATM without registration from the Financial Conduct Authority
- Police allege Rahman also laundered £300,000 by converting cash into cryptocurrency through his unregulated machine
A trader from East Ham, London, has denied charges of operating an unregistered cryptocurrency ATM and laundering £300,000. The allegations against Habibur Rahman surfaced following a police search of his Chatham-based shop, Gadcet, where officers seized multiple crypto ATMs. Authorities claim Rahman, who is the first individual in the UK charged with such an offence, continued operating despite being ordered to stop by regulators.
Equipment Seized in Raid
Rahman’s business first came under scrutiny in April 2023 when Kent Police raided his premises, uncovering the unregistered cryptocurrency machine in public view. Officers also seized equipment suspected to have been used to convert significant sums of money into cryptocurrency.
A police spokesperson confirmed that Rahman was arrested on the same day, with charges later revealed regarding his alleged role in laundering £300,000 by converting criminal cash into digital currency.
Rahman has been accused of violating FAC regulations by running an unlicensed ATM and converting large sums of money illegally. He recently appeared at Medway Magistrates’ Court, where he entered a plea of not guilty, and his case has been transferred to Maidstone Crown Court, with a hearing scheduled for November 7.
UK Getting Tough on Crypto ATM Regulations
In the UK, cryptocurrency ATMs must be registered with the Financial Conduct Authority (FCA) and meet strict anti-money laundering regulations. Despite warnings and enforcement actions, unlicensed machines have been operating in various locations. These ATMs allow individuals to exchange cash for cryptocurrencies like Bitcoin or Ethereum, but without FCA oversight, they can facilitate illegal activities such as money laundering.
No crypto ATM operator has been granted a license, making the police’s job easy for them: all such operators are breaking the law.
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