UK authorities impose first criminal penalty for crypto ATM operating without FCA registration

Habibur Rahman, 37, from East Ham, London, has become the first person in the UK to face criminal charges for operating a crypto ATM without registration. This development comes despite a 2022 ban on crypto ATMs by the Financial Conduct Authority (FCA).

UK authorities crack down on cryptocurrency ATMs

UK police have been cracking down on unregistered crypto ATMs since the ban, but Rahman’s case marks the first criminal charge. Authorities executed a search warrant at an electronics store in Chatham, Kent, where they seized multiple crypto ATMs, including one displayed publicly. Rahman faces allegations of laundering £300,000 by converting illicit funds into digital assets.

related reading：UK Government Condemns Elon Musk's Civil War Comment Amid Riots

There are hidden dangers in encrypted ATMs

FCA's Director of Payments and Digital Assets, Matthew Long, has expressed concerns over crypto ATMs. He stated that none of these machines are registered with the FCA, warning that users risk engaging with criminal enterprises when using them.

There are currently no crypto ATMs registered with the FCA – so if you use one of these machines you could be handing over your money to criminals.

U.S. cryptocurrency ATMs among global leaders

While the UK has taken a hard stance against crypto ATMs, other regions continue to see growth. The US, which leads globally with 82% of all crypto ATMs, has also faced issues related to these machines, including extortion and scams. In recent months, US law enforcement agencies have shut down numerous Bitcoin ATMs, and the total number of BTMs has decreased steadily.

Source: Coin ATM Radar

related reading：Hundreds of Crypto ATMs popping up in Australia Amid Rising Regulatory Concerns

In contrast, countries like Australia and New Zealand have experienced rapid growth in crypto ATMs, with Australia seeing a 1700% increase in two years. Despite varying global trends, crypto ATMs remain a hotbed for illicit activities, with TRM Labs estimating that at least $160 million has been laundered through these machines since 2019.