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Suspects Arrested Over Alleged Illegal $1.2 Billion Cryptocurrency Deals by UK FCA
The Financial Conduct Authority (FCA) and the Metropolitan Police Service in the United Kingdom have arrested two people suspected of running an unregistered cryptocurrency exchange worth more than 1 billion British pounds ($1.2 billion).
What happened: THE operation highlights the FCA’s commitment to tackling financial crime and ensuring the integrity of the UK financial system.
The suspects, aged between 38 and 44, were arrested following an inspection conducted by the FCA at their associated offices.
Additionally, police seized several digital devices during searches of two residential properties in London.
Both individuals were interviewed under caution by the FCA and have been released on bail pending further investigations.
Teresa Chambersexecutive director of the FCA’s Enforcement and Market Oversight, underlined the importance of this operation for safeguarding the financial system.
“The FCA has an important role to play in keeping dirty money out of the UK financial system. These arrests demonstrate that we will do everything in our power to stop cryptocurrency companies from operating illegally in the UK,” Chambers said.
Cryptocurrency exchange service providers in the UK must be registered with the FCA and comply with the country’s strict money laundering regulations to operate legally.
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From 10 January 2021, these firms are required to comply with the Money Laundering, Terrorist Financing and Transfer of Funds (Payer Information) Regulations 2017 (MLR).
The FCA has the authority to impose guidance on cryptocurrency companies, including banning them from operating if they do not meet regulatory standards.
The FCA continues to warn consumers about the high risks associated with unregulated cryptocurrencies, stressing that there is little to no protection for individuals if things go wrong.
The FCA also maintains a list of firms suspected of operating without proper registration, urging consumers to remain informed and cautious.
What’s next: This development comes at a time when the cryptocurrency industry is facing increasing scrutiny and regulatory challenges around the world.
The FCA’s ongoing investigation into this illegal operation highlights the need for this rigorous oversight of the rapidly evolving digital asset market.
For those interested in the future of digital finance and regulatory developments, Benzinga’s The future of digital assets The November 19 event will provide a platform for industry leaders to discuss these pressing issues.
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