A trader in Kent is believed to have become the first person in the UK to be charged with operating an illegal cryptocurrency ATM.

Last year, Kent Police Officers carried out a search warrant to the Gadcet shop in Chatham. 

A “number” of crypto ATMs were seized, the Kent Police said, including one that was on public display.

Mr Rahman of East Ham was arrested the same day and has now been charged with operating the machine without registration from the Financial Conduct Authority (FCA).

As it stands, crypto asset exchange providers in the UK must be registered with the FCA and comply with the UK Money Laundering Regulations — this includes operators of crypto ATMs. 

Failure to comply can be a criminal offence, punishable by up to 2 years in prison, a fine, or both.

Around this time last year, the regulator stated that since the start of 2023, 34 sites across London, Leeds, Nottingham, and more were inspected, with 26 machines operating unlawfully being disrupted.

“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,” explained Matthew Long, director of payments and digital assets at the FCA.

“The FCA works with law enforcement partners like Kent Police to protect consumers and maintain the integrity of our financial markets. 

“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.”

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The Kent Police also said that the Chatham man is alleged to have laundered £300,000 of criminal cash by converting it into cryptocurrency.

Mr Rahman has been bailed to attend Medway Magistrates’ Court on Thursday 10 October 2024.