Two suspects were recently detained and questioned by the UK Metropolitan Police and the Financial Conduct Authority (FCA) for allegedly operating an illegal cryptocurrency business that exceeded 1 billion British pounds ($1.2 billion) in transactions.
The FCA highlighted the importance of registration requirements for crypto businesses and issued warnings to consumers about the risks involved in dealing with unregistered entities.
The suspects, aged 38 and 44, were arrested and later released on bail by the FCA. During the investigation, the Metropolitan Police seized various digital devices from the suspects’ homes. The police now have the authority to freeze and confiscate crypto assets as part of fraud investigations.
Therese Chambers, the Executive Director of Enforcement and Market Oversight at the FCA, emphasized the agency’s commitment to preventing illegal crypto activities in the UK financial system. She stressed the FCA’s role in keeping illicit funds out of the country’s financial system and stated that the arrests demonstrate their determination to stop illegal crypto operations.
The FCA has faced criticism in the past for its slow enforcement actions but has since mandated registration for all crypto asset-related businesses in January 2021. This measure is aimed at ensuring compliance with money laundering regulations and combating financial crimes like terrorist financing and illicit fund transfers.
More than 300 businesses have applied for registration to offer crypto-related services, but only around 44 companies have been successfully registered so far. The FCA listed specific requirements for businesses offering crypto services, emphasizing the need to comply with the MLRs and adhere to established rules and regulations.
The watchdog regularly warns UK citizens about the risks associated with crypto assets and maintains a list of suspected unregistered businesses. They have refrained from commenting on ongoing investigations but have promised to provide updates as necessary in the future.
In conclusion, the crackdown on illegal crypto activities in the UK demonstrates the authorities’ commitment to ensuring a safe and compliant financial system. By enforcing registration requirements and issuing consumer warnings, the FCA aims to protect consumers and prevent financial crimes in the crypto industry.