The UK’s Financial Conduct Authority (FCA), in collaboration with the Metropolitan Police Service, conducted an operation to arrest two individuals, aged 38 and 44, on suspicion of illegal cryptocurrency exchange.
Over £1 billion of unregistered cryptocurrencies are believed to have been bought and sold through this business.
The FCA inspected offices associated with the suspects and police seized a number of digital devices during searches of two London homes.
Both suspects were questioned by the FCA and released on bail. The FCA’s investigation into the case is ongoing.
Cryptoasset exchange providers must be registered with the FCA and comply with UK money laundering regulations in order to operate legally in the UK.
From 10 January 2021, crypto businesses providing certain crypto services in the UK must be registered with the FCA under the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017 (MLRs) (Payer Information ).
Cryptocurrency businesses must be registered with the FCA under the MLRs and comply with regulatory requirements if they intend to provide certain cryptocurrency services by way of business in the UK as well.
Under the MLRs, the FCA can impose directions on crypto businesses that can ban them from operating. It is a criminal offense to contravene a direction imposed under the MLRs.