UK trader denies charges in first-ever illegal crypto ATM prosecution

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As a seasoned researcher with extensive experience in the ever-evolving world of finance and technology, I find myself both intrigued and alarmed by the recent developments in the cryptocurrency sector, specifically in London. The cases of Habibur Rahman and Olumide Osunkoya highlight the growing need for robust regulation in this burgeoning industry.

A London trader has pleaded not guilty to operating an illegal crypto ATM business and laundering $395,000 in criminal cash.

In simple terms, Habibur Rahman, hailing from East Ham, London, who deals with cryptocurrencies, has denied allegations about running an unlawful automated teller machine service for digital currencies and washing approximately £300,000 (equivalent to around $395,000) of illicit money.

In April 2023, Rahman was apprehended following a police search of his mobile phone store in Chatham, Kent. During this search, several cryptocurrency Automated Teller Machines (ATMs) were confiscated. According to BBC reports, this action was taken by the police spokesperson for Kent Police. The Financial Conduct Authority (FCA) stipulates that all operators of crypto ATMs must register with them, a regulation which Rahman is said to have disregarded.

At Medway Magistrates’ Court, he was accused of operating an unlicensed business and illegally swapping cash into cryptocurrency from April to June 2022. Matthew Long, the director of payments and digital assets at the Financial Conduct Authority, emphasized the risks involved in crypto investments, warning potential users: “By using these machines, you might be giving your money to criminals.

In a recent development, the Financial Conduct Authority (FCA) has broadened its enforcement efforts, as demonstrated in a distinct case involving Olumide Osunkoya, another London-based trader accused of illegally operating numerous cryptocurrency Automated Teller Machines (ATMs). These ATMs processed approximately £2.6 million ($3.4 million) worth of transactions. Subsequently, Osunkoya admitted guilt to five charges linked to managing an unlawful network of crypto ATMs, making it the U.K.’s first such conviction.

This situation highlights the Financial Conduct Authority’s persistent actions against unregistered cryptocurrency activities, which is part of a larger strategy to strengthen regulatory supervision within the crypto market. With the escalating risks involved in these transactions, it seems that the FCA is becoming more watchful in its mission to safeguard consumers and uphold financial stability.

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2024-10-11 12:27