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FCA cracks down on suspicions in $1.2 billion illegal crypto asset business
Two people have been arrested and questioned by the UK’s Metropolitan Police and the Financial Conduct Authority (FCA) for allegedly running an illegal cryptocurrency operation exceeding 1 billion British pounds ($1.2 billion) in the region.
The FCA has highlighted key registration requirements for crypto firms and issued warnings to consumers.
Suspects arrested and questioned
According to the Financial Conduct Authority (FCA), a significant amount of cryptocurrencies have passed through this cryptocurrency business.
The FCA press release declared that “More than £1 billion of unregistered crypto assets are believed to have been bought and sold through this business.” The arrested people, aged between 38 and 44, were questioned and later released on bail by the FCA.
As part of the investigation, London Metropolitan Police confiscated numerous digital devices associated with the activity during searches of the suspects’ residences. Recently granted powers allow UK police to seize and freeze crypto assets as part of fraud investigations.
Therese Chambers, executive director of enforcement and market oversight at the FCA, highlighted the agency’s commitment to preventing illegal crypto activity in the UK financial system. She stated,
“The FCA has an important role to play in keeping dirty money out of the UK financial system. These arrests show that we will do everything in our power to stop cryptocurrency companies from operating illegally in the UK.”
Previously criticized for slow enforcement actions, the FCA has mandated registration for all cryptocurrency-related businesses from January 2021. This measure aims to ensure compliance with UK rules money laundry regulations and combat financial crimes such as terrorist financing and illicit transfers of funds.
Since the requirement was implemented, more than 300 companies have applied for registration to offer cryptocurrency-related services, but only about 44 companies have been successfully registered.
Requirements listed by the FCA
According to the release, firms offering cryptocurrency-specific services must register with the FCA under the MLRs and adhere to the established rules and regulations. The FCA has highlighted its authority to issue directions and impose restrictions on cryptocurrency activities as authorized by the MLRs.
The watchdog regularly alerts UK Citizens on the Risks Associated with Crypto Assets and Holds list of alleged unregistered companies.
Regarding the ongoing investigation, the FCA said it will refrain from commenting at this time and will provide further updates in the future as appropriate.