The UK Financial Conduct Authority (FCA), collaborating with the Metropolitan Police Service, apprehended two co-founders of a crypto exchange. They are suspected of operating an unregistered business that handled over £1 billion (approximately $1.26 billion) in crypto assets.
This operation highlights the efforts to tackle illicit transactions in the crypto sector.
UK FCA Investigates The Unnamed Individuals
Authorities conducted detailed inspections at the business premises linked to the suspects, aged 38 and 44. They also searched two residential properties in London, seizing several digital devices.
Following these actions, both individuals were interviewed under caution and subsequently released on bail. However, the FCA has not shared information about the individuals’ or their firms’ names. The FCA’s ongoing investigation emphasizes the complexity of the case.
Read more: Crypto Regulation: What Are the Benefits and Drawbacks?
In the UK, crypto exchanges must register with the FCA and adhere to the country’s anti-money laundering regulations. This requirement highlights the FCA’s commitment to maintaining financial integrity and preventing the crypto market from becoming a conduit for illicit activities.
Therese Chambers, Executive Director of Enforcement and Market Oversight at the FCA, reinforced the agency’s dedication to its role.
“The FCA has an important role to play in keeping dirty money out of the UK financial system. These arrests show we will do everything in our power to stop crypto firms from operating illegally in the UK,” Chambers said.
Moreover, this incident is not the FCA’s first action against non-compliance. In October 2023, the FCA imposed a $7.8 million fine on ADM Investor Services International. This New York City-based commodities broker was penalized for failing to meet anti-money laundering standards.
Read more: How Does Regulation Impact Crypto Marketing? A Complete Guide
Since October, the FCA has intensified its regulatory framework, particularly concerning the marketing of crypto assets. Any firm promoting cryptoassets to UK customers without adherence to the new guidelines faces severe penalties.
These include unlimited fines or imprisonment for up to two years. In line with these regulations, the FCA also provided examples on its website illustrating good and poor practices in preparation for enforcing these marketing rules.
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