Crypto News – FCA Cracks Down on £1 Billion Illegal Crypto Business, Two Arrested

Crypto News – UK FCA Cracks Down Alleged £1B Illegal Crypto Activities

Crypto News – The Financial Conduct Authority (FCA) and London’s police force have apprehended two individuals suspected of operating an illegal cryptocurrency business valued at $1.3 billion. According to a press release from the FCA on Thursday, more than £1 billion in unregistered crypto assets were allegedly bought and sold through this operation.

Suspects Released on Bail After Initial Interrogation

The suspects, aged 38 and 44, were interviewed under caution by the FCA and subsequently released on bail. As part of the ongoing investigation, the FCA inspected offices linked to the suspects, while the Metropolitan Police seized several digital devices during searches of two residential properties in London.

Investigation Ongoing, FCA Remains Tight-Lipped

The investigation is still active, and the FCA has refrained from providing additional details at this time. Since January 2021, it has been mandatory for crypto asset services to register with the FCA under anti-money laundering regulations. Despite over 300 businesses attempting to register, only 44 companies have been successful so far.

Enhanced Powers for Police in Crypto Investigations

The UK has recently granted law enforcement more authority to seize and freeze crypto and related items during investigations. Therese Chambers, the FCA’s executive director of enforcement and market oversight, emphasized the regulator’s commitment to combating illegal crypto activities. “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.”

Increased Scrutiny Following Criticism from National Audit Office

The FCA may be intensifying its enforcement efforts following criticism from the UK’s National Audit Office. Late last year, the spending watchdog called out the FCA for its slow response in taking enforcement action.

This crackdown underscores the FCA’s determination to uphold the integrity of the UK financial system by targeting unlawful crypto operations.

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