July 15, 2024

Financial Conduct Authority Arrests Two in Illegal Crypto Asset Exchange Raid


The Financial Conduct Authority (FCA) of the United Kingdom has arrested two individuals suspected of operating an illegal crypto asset exchange. The illicit business is believed to have traded over 1 billion British pounds ($1.2 billion) worth of unregistered crypto assets, according to an official statement from the FCA.

In a series of coordinated raids, FCA agents seized multiple digital devices from offices associated with the suspects. Therese Chambers, the executive director of enforcement and market oversight at the FCA, emphasized the significance of this action, stating, “The regulator plays an important role in keeping dirty money out of the U.K. financial system.”

The two suspects, whose identities have not been disclosed, were interviewed by the FCA and subsequently released on bail. However, the investigation remains ongoing as the FCA continues to gather evidence and assess the full extent of the illegal operations.

Under U.K. law, operators of crypto asset exchanges are required to register directly with the FCA and comply with stringent anti-money laundering regulations. These requirements, which have been in place since January 2021, are designed to ensure that all crypto-related activities are conducted legally and transparently.

Chambers highlighted the longstanding nature of these regulations, indicating that the FCA is unlikely to be lenient with those claiming ignorance. “Given that these exchange requirements have been active for so long, it would be difficult to persuade the FCA that any operator is unaware of the necessary compliance,” she stated. She further noted the improbability of leniency for those who had previously applied for registration and were among the 86% of exchanges that were rejected yet continued their operations illegally.

The FCA’s crackdown underscores its commitment to maintaining the integrity of the U.K.’s financial system and protecting it from illicit activities. The arrests and ongoing investigation serve as a stern warning to other operators about the importance of adhering to regulatory standards.

As the investigation progresses, the FCA is expected to release further details. In the meantime, the regulator continues to urge all crypto asset exchanges to ensure they are fully compliant with U.K. laws to avoid similar enforcement actions.

Digital Assets Desk

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