UK's FCA Arrests Two Over Unauthorised £1 Billion Crypto Exchange Operation
Summary:
The UK's Financial Conduct Authority (FCA) has arrested two people suspected of running an unauthorised £1 billion cryptocurrency exchange. The regulatory body confiscated several digital devices and is continuing its investigation, while the suspects have been released on bail. Crypto exchange operators in the UK have been legally required to register with the FCA since January 2021. Despite the current general election disrupting full crypto regulation, the requirement for crypto service providers to register with the FCA remains.
The UK's Financial Conduct Authority (FCA) has reportedly apprehended two individuals suspected of running an unauthorized cryptocurrency exchange platform. The illicit enterprise is thought to have traded upwards of £1 billion ($1.2 billion USD) in unregulated crypto assets, as reported by the FCA on June 19. Upon searching the premises linked to the suspects, several digital devices were confiscated.
Therese Chambers, the FCA's director of enforcement and market supervision, emphasized the watchdog's crucial function in safeguarding the UK financial system from the infiltration of illicit funds. Reinforcing its commitment to halting illegal crypto operations in the nation, the FCA has demonstrated it will leave no stone unturned to that end.
Post-arrest, both individuals were interrogated by the FCA and later granted bail, with investigations continuing. Since January 2021, all crypto asset exchange operators in the UK are required by law to be officially registered with the FCA and comply with anti-money-laundering regulations to ensure lawful operations.
Business crime attorney at Peters & Peters and crypto fraud specialist, Charlotte Tregunna, stated that given the long-standing nature of these regulatory stipulations, ignorance of them would be unlikely to convince the FCA. She added this might be perceived as a clear demonstration of the FCA's enforcement capabilities, but it also spotlights the uncertainty still plaguing market actors and service providers regarding regulatory guidance.
The ongoing general election in the UK, scheduled for July 4, has temporarily hindered the full imposition of crypto regulations, Tregunna noted. Nevertheless, it should be clear to crypto service providers that they are obliged to be registered with the FCA. She urged the forthcoming victor of the election to prioritize returning the UK to its intended regulatory trajectory, expediently.
Published At
6/21/2024 11:44:38 AM
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