UK Regulator and Metropolitan Police Arrest Two in Major Crypto Bust Running Illegal Crypto Operation

The Financial Conduct Authority (FCA), in collaboration with London’s police force, has apprehended two individuals suspected of orchestrating a substantial illegal cryptocurrency enterprise valued at £1 billion ($1.3 billion).

“Over £1 billion in unregistered crypto assets are believed to have been transacted through this operation,” the FCA revealed in a press release on Thursday.

The suspects, aged 38 and 44, were interrogated under caution by the FCA and subsequently released on bail. During the inquiry, the FCA scrutinized the suspects’ business premises, while the Metropolitan Police confiscated numerous digital devices during raids on two residential properties in London.

The investigation is ongoing, with the FCA withholding additional details at this stage.

Read more: London Stock Exchange Embraces Crypto with ETP Listings

Since January 2021, crypto asset service providers have been mandated to register with the FCA under stringent anti-money laundering regulations. Despite over 300 companies attempting to comply, only 44 have successfully made it onto the register.

In a related development, the UK government has recently enhanced police powers, enabling the seizure and freezing of cryptocurrencies and crypto-related assets during investigations.

“The FCA plays a pivotal role in safeguarding the UK financial system from illicit activities,” stated Therese Chambers, the FCA’s Executive Director of Enforcement and Market Oversight. “These arrests underscore our commitment to thwarting illegal crypto operations within the UK.”

This decisive action comes as the FCA ramps up its enforcement efforts, following criticism from the National Audit Office, the UK’s spending watchdog, for perceived delays in taking enforcement measures.

Boosting Enforcement Against Crypto Misconduct

As the landscape of digital finance evolves, the FCA’s intensified crackdown on unlawful crypto activities signals a robust stance against financial malfeasance. The regulator’s proactive measures are crucial in maintaining the integrity of the UK’s financial ecosystem, ensuring that only compliant and legitimate entities operate within the sector.

Conclusion

The FCA’s recent arrests mark a significant stride in the ongoing battle against crypto-related financial crimes. With enhanced regulatory frameworks and empowered enforcement agencies, the UK is fortifying its defenses against the misuse of digital assets, thereby fostering a safer and more transparent financial environment.