UK Authorities Arrest Two in $1.3 Billion Crypto Crackdown
Key Takeaways:
- FCA and London Metropolitan Police arrests two in £1B illegal crypto exchange bust
- £1B unregistered crypto transactions linked to arrested suspects
In a significant collaborative operation, the London Metropolitan Police and the Financial Conduct Authority (FCA) apprehended two individuals accused of operating an unregistered crypto-asset exchange.
The suspects, aged 38 and 44, are believed to have facilitated transactions exceeding £1 billion in unregistered crypto-assets.
The FCA and the London police meticulously planned the operation, which involved inspecting offices associated with the suspects and conducting searches at two residential properties in London.
Since assuming responsibility for Anti-Money Laundering (AML) oversight in the crypto sector, the FCA has uncovered significant weaknesses in many firms’ compliance controls. This has resulted in a high rejection rate for new registrations, with many firms either withdrawing their applications or facing outright refusal from the FCA.
Therese Chambers, the FCA’s executive director of enforcement and market oversight, emphasized the regulator’s dedication to maintaining the integrity of the UK’s financial system.
“The FCA has an important role to play in keeping dirty money out of the UK financial system,” Chambers stated.
“These arrests show we will do everything in our power to stop crypto firms from operating illegally in the UK.”
Chambers highlighted that these arrests could serve as a precedent, demonstrating the FCA’s effectiveness in cracking down on illegal operations.
She pointed out the possibility that the arrested individuals might have previously applied for FCA registration and continued their operations despite rejection, which happens to 86% of exchanges seeking registration.
This crackdown comes as the UK government is actively working on enacting comprehensive cryptocurrency regulations, expected to be in place by June or July.
The FCA’s recent actions may reflect a more aggressive stance following criticism from the National Audit Office for perceived delays in executive actions. The authority might increasingly leverage its executive powers to ensure compliance and deter illegal activities in the burgeoning crypto market.
About The Author
