The Financial Conduct Authority (FCA) and the Metropolitan Police have arrested two individuals connected to an alleged illegal cryptocurrency business worth $1.3 billion in the UK. The FCA stated that they are committed to preventing crypto firms from operating unlawfully.
According to the FCA, more than £1 billion of unregistered crypto assets were reportedly traded through this illegal business. The two suspects, aged 38 and 44, were taken into custody for questioning and later released on bail. The FCA conducted searches at the suspects’ offices and the Metropolitan Police seized various digital devices from two residential properties in London as part of the ongoing investigation.
Since January 2021, crypto asset services are required to be registered with the FCA to comply with anti-money laundering regulations. Despite over 300 businesses attempting to register, only 44 companies have successfully done so. The UK has also granted additional powers to the police to confiscate and freeze crypto assets during investigations.
Therese Chambers, the FCA’s executive director of enforcement and market oversight, emphasized the importance of preventing illegal financial activities in the UK. She stated that these arrests demonstrate the FCA’s commitment to cracking down on illicit crypto operations within the country.
Following criticism from the National Audit Office for delays in enforcement actions, the FCA appears to be ramping up its enforcement efforts. The regulator’s primary goal is to safeguard the UK’s financial system from being compromised by illegal activities, including those involving cryptocurrencies.
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As the investigation into the illegal crypto business continues, the FCA remains vigilant in its efforts to uphold regulatory standards and combat financial crimes in the cryptocurrency sector. Stay tuned for further updates on this developing story.