July 24, 2024
Latest Cryptocurrency News

FCA Cracks Down on Illegal Crypto Asset Exchange

The Financial Conduct Authority (FCA) in the United Kingdom has arrested two individuals suspected of operating an illegal crypto asset exchange. On June 19, the FCA revealed that the illicit business had allegedly traded more than £1 billion ($1.2 billion) worth of unregistered crypto assets. During raids on offices linked to the suspects, authorities seized multiple digital devices.

FCA’s Role in Preventing Financial Crime

Therese Chambers, the FCA’s executive director of enforcement and market oversight, emphasized the regulator’s crucial role in maintaining the integrity of the U.K. financial system. The arrests underline the FCA’s commitment to stopping illegal crypto operations within the country. Chambers stressed the importance of their mission to keep “dirty money” out of the financial system.

Ongoing Investigation and Regulatory Compliance

The FCA has interviewed and released the two suspects on bail, with the investigation still ongoing. Since January 2021, crypto asset exchange operators in the U.K. have been required to register with the FCA and comply with money laundering regulations to operate legally. Charlotte Tregunna, a partner at business crime law firm Peters & Peters, highlighted the difficulty of claiming ignorance of these regulations, especially for those previously rejected by the FCA.

The Future of Crypto Regulation in the U.K.

The arrests come at a time of political uncertainty, with a general election scheduled for July 4. Tregunna noted that the election has disrupted the U.K.’s progress towards full crypto regulation. She urged that post-election, the government should prioritize advancing regulatory clarity for market participants and service providers.

As the investigation continues, the FCA’s actions serve as a warning to other crypto firms operating outside the law. The outcome of this case could set a significant precedent for future enforcement in the burgeoning crypto sector.

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Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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