The Financial Conduct Authority (FCA) in the United Kingdom has announced the arrest of two individuals suspected of running an illegal crypto asset exchange. According to the FCA, the illicit business is believed to have conducted transactions worth over 1 billion British pounds ($1.2 billion) in unregistered crypto assets. The FCA conducted raids on offices connected to the suspects and seized various digital devices.
Therese Chambers, the executive director of enforcement and market oversight at the FCA, emphasized the importance of the regulator in preventing “dirty money” from entering the U.K. financial system. The two suspects were interviewed and released on bail, with the investigation ongoing.
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 operations. These regulations have been in effect since January 2021. Charlotte Tregunna, a partner at the business crime law firm Peters & Peters specializing in crypto fraud, noted that it would be challenging to convince the FCA of ignorance of these requirements, especially for exchanges that had previously applied for registration and been rejected.
As the U.K. approaches a general election scheduled for July 4, Tregunna mentioned that the election has caused a delay in the country’s full crypto regulation. However, crypto service providers should be mindful of the need to register with the FCA to comply with regulations.
In related news, rumors circulating in Korea have caused panic in the crypto market, while Binance has announced airdrops for BNB hodlers in Asia Express magazine.