London man denies charges of illegal crypto ATM operations

A London resident, Habibur Rahman, has denied allegations of running an unauthorised cryptocurrency ATM business and laundering criminal proceeds. 

Rahman, 37, from East Ham, appeared at Medway Magistrates' Court, where he pleaded not guilty to charges of operating illegal crypto ATMs and converting £300,000 of illicit cash into digital currencies without proper authorisation from the Financial Conduct Authority (FCA). 

The accusations date back to the period between April 1 and June 16, 2022, when Rahman allegedly converted large sums of cash into cryptocurrency. 

The case gained attention after a police raid at a shop in Chatham on April 28, 2023, during which officers seized several cryptocurrency ATMs, including one on public display. 

According to authorities, Rahman’s involvement in the cryptocurrency trade violated the UK's financial regulations, as all crypto ATMs must be authorised by the FCA to operate legally. 

The FCA has emphasised that there are currently no legally operating cryptocurrency ATM businesses in the UK. 

The case has now been transferred to Maidstone Crown Court, with a follow-up hearing scheduled for November 7, 2024. 

Rahman was granted bail following his court appearance. 

Law enforcement has accused him of money laundering, claiming the converted funds were part of an illegal operation. 

The outcome of this case will likely shed further light on the UK’s tightening regulations around cryptocurrency activities. 

Last month, the FCA secured its first conviction related to cryptocurrency ATM operations when Olumide Osunkoya pleaded guilty to running an illegal crypto ATM network across the UK. 

The regulator continues to stress that there are no approved crypto ATM operators within the country.