Two individuals suspected of running an illegal cryptocurrency exchange have been arrested by the Financial Conduct Authority (FCA) in the United Kingdom. The FCA stated that the illegal business had conducted transactions worth over £1 billion ($1.2 billion) in unregistered crypto assets. The FCA seized various digital devices during raids on the suspects’ offices.
Therese Chambers, the executive director of enforcement and market oversight at the FCA, emphasized the regulator’s role in preventing illicit funds from entering the UK financial system. The FCA has interviewed the arrested individuals, who were subsequently released on bail, while the investigation continues.
In the UK, crypto asset exchange operators are required to register directly with the FCA and adhere to anti-money laundering regulations to ensure legal operations. These requirements have been in place since January 2021. Charlotte Tregunna, a partner at the business crime law firm Peters & Peters and an expert in crypto fraud, noted that it would be challenging to convince the FCA of any lack of awareness of these obligations, especially if the suspects had previously applied for registration and were among the 86% of exchanges that were rejected but continued to operate.
The upcoming general election on July 4 has disrupted the UK’s progress towards full crypto regulation. However, crypto service providers should be aware that registration with the FCA is still mandatory.
Magazine:
Crypto rumors spark panic in Korea, Binance airdrops for BNB hodlers: Asia Express