UK Regulator FCA Arrests Two People Associated With 1B-Pound Illegal Crypto Business

As a seasoned crypto investor with a keen interest in the regulatory landscape of this rapidly evolving industry, I’m deeply concerned about the recent arrests and allegations surrounding an illegal $1.3 billion crypto business in the U.K. The potential scale of this operation is staggering, and it serves as a stark reminder of the importance of transparency, compliance, and regulation within the crypto space.

Two individuals were apprehended by the Financial Conduct Authority (FCA) and London’s law enforcement agency on suspicion of running an illicit $1.3 billion cryptocurrency operation.

Approximately 1 billion pounds worth of unregistered cryptographic assets are estimated to have been transacted through this business, according to the regulatory body’s statement issued on Thursday.

The individuals, who are 38 and 44 years old, were questioned carefully by the Financial Conduct Authority (FCA) and then granted bail. In the course of their probe, the FCA scrutinized offices linked to these individuals. Meanwhile, the Metropolitan Police obtained several digital gadgets during searches at two London homes.

The investigation continues. The FCA declined to add any further details.

Beginning in January 2021, it has been mandatory for crypto asset service providers to register with the Financial Conduct Authority (FCA) under their anti-money laundering regulations. Out of the roughly 300 businesses that have attempted to register, only 44 have been successful so far.

In a recent development, the U.K. has granted the police enhanced authority to confiscate and immobilize cryptocurrencies and related assets during probes.

The Financial Conduct Authority (FCA) plays a crucial part in preventing ill-gotten funds from infiltrating the UK’s financial system, as expressed by Therese Chambers, the FCA’s enforcement and market oversight director. These recent arrests are evidence of our unwavering commitment to putting a stop to cryptocurrency companies that flout the law in the UK.

As a crypto investor, I’ve noticed that the regulatory body seems to be strengthening its enforcement stance following criticism from the U.K.’s National Audit Office last year for taking too long to enforce actions.