London Trader Denies Charges of Running Illegal Crypto ATM and Money Laundering

East Ham, London-based cryptocurrency trader Habibur Rahman has entered a not guilty plea to charges of running an illicit cryptocurrency ATM company and laundering almost $395,000 in illicit revenues. Rahman was arrested earlier this year, according to authorities, because he disregarded regulatory standards.

Allegations and Legal Proceedings

Rahman was arrested in April 2023 following a police search of his mobile phone shop in Chatham, Kent, where they seized several unregistered crypto ATMs. According to a spokesperson for Kent Police, these machines were allegedly being used to convert criminal cash into cryptocurrency. Under U.K. law, the Financial Conduct Authority (FCA) requires all crypto ATM operators to register, a rule Rahman is accused of violating.

During his court appearance at Medway Magistrates’ Court, Rahman faced charges of running an unlicensed business and converting cash to cryptocurrency between April and June 2022. The FCA has expressed concerns about the risks posed by illegal crypto operations. Matthew Long, the FCA’s director of payments and digital assets, emphasized the potential dangers, stating, “if you are using one of these machines, you could be handing your money to criminals.”

FCA’s Wider Enforcement Push

Rahman’s case is not unique, since it comes after another dealer located in London, Olumide Osunkoya, was found guilty of operating many unlicensed cryptocurrency ATMs and processing transactions totaling £2.6 million ($3.4 million). This was the first conviction involving illicit cryptocurrency ATM networks in the United Kingdom.

These incidents demonstrate the FCA’s stepped-up efforts to target unregistered cryptocurrency companies. In an effort to safeguard customers and maintain the integrity of the financial system, the regulatory body is concentrating more of its efforts on suppressing illicit activities in the cryptocurrency market. The FCA is stepping up enforcement measures to protect the public in response to the surge in crimes involving cryptocurrencies.