The Financial Conduct Authority (FCA) in the United Kingdom has announced the arrest of two individuals suspected of running an illegal crypto asset exchange. The FCA revealed that the illicit operation was responsible for trading over 1 billion British pounds ($1.2 billion) worth of unregistered crypto assets. Following raids on the suspects’ offices, the FCA confiscated numerous digital devices.
Therese Chambers, the executive director of enforcement and market oversight at the FCA, emphasized the regulator’s crucial role in preventing “dirty money” from entering the U.K. financial system. The FCA has conducted interviews with the arrested individuals, who have been released on bail, as the investigation continues.
In the U.K., operators of crypto asset exchanges are required to register directly with the FCA and adhere to anti-money laundering regulations to ensure legal compliance. These regulations have been in place since January 2021. Charlotte Tregunna, a partner at the business crime law firm Peters & Peters specializing in crypto fraud, pointed out that the FCA is unlikely to be lenient towards those who fail to comply with the registration requirements, especially if they have previously been rejected for registration and continued operations.
As the U.K. approaches a general election scheduled for July 4, Tregunna noted that the election has disrupted the country’s progress towards comprehensive crypto regulation. Despite this, crypto service providers should be mindful of the necessity to register with the FCA to operate within the legal framework.
In other news, rumors surrounding crypto have sparked panic in Korea, while Binance has announced airdrops for BNB hodlers in the latest issue of Asia Express magazine.