A man suspected of operating an illegal cryptocurrency ATM is believed to be the first person in the United Kingdom (UK) to be charged with such an offense.
Crypto ATMs have been relatively common in the UK. However, the Financial Conduct Authority (FCA), the body that regulates financial services in the country, banned them in 2022.
The ATMs are Internet-connected kiosks that allow customers to purchase bitcoins and other cryptocurrencies with deposited cash.
Police officers carried out a search warrant at an electronics store in Chatham, Kent, where they seized several crypto ATMs including one that was on public display.
Habibur Rahman, 37, from East Ham, London, was arrested and has now been charged with operating the machine without registration from the Financial Conduct Authority.
The mobile phone shop owner is also alleged to have laundered £300,000 ($395,000) of criminal cash by converting it into cryptocurrency.
Rahman has been bailed to attend court on October 10, 2024.
Are crypto ATMs generally legal?
Matthew Long, Director of Payments and Digital Assets for the FCA, stated: “There are currently no crypto ATMs registered with the FCA – so if you’re using one of these machines you could be handing your money to criminals.”
Long warned: “We continue to remind people that crypto remains largely unregulated and high risk; if you buy it, you should be prepared to lose all your money.”
The FCA has previously stated because cryptocurrency is unchecked in the UK, any losses incurred will not be covered by the Financial Services Compensation Scheme.
However, according to Coin ATM Radar, a website that tracks cryptocurrency teller machines around the world, the United States is by far the world’s crypto ATM leader, with over 32,000 active kiosks in place today.
In a distant second place, Canada has only one-tenth the number of crypto ATMs as the US, at just over 3,000.
Under US federal law, operators of crypto ATMs must register with the Treasury Department’s Financial Crimes Enforcement Network, which obliges them to monitor activity on their machines and report anything suspicious. Apart from that, regulations for operators are set at the state level. If the ATM hasn’t been registered and is up and running, operators can face up to 30 years of prison time in the US.
Earlier this month, ReadWrite reportedGermany’s financial regulator seized almost 25 million euros ($28 million) in cash due to a nationwide operation targeting cryptocurrency ATMs.
Featured image: Ideogram
