FCA cracks down on illegal cryptocurrency trading, involving $1.2 billion

The Financial Conduct Authority (FCA), in a joint operation with the Metropolitan Police, has arrested and questioned two individuals suspected of running a large-scale illegal cryptocurrency business.

The two suspects, aged 38 and 44 respectively, were involved in illegal transactions worth up to 1 billion pounds (approximately 1.2 billion U.S. dollars). After interrogation, the two suspects have been released on bail, and the investigation is still ongoing.

Arrest Cryptocurrency Suspects Suspected of Illegal Trading

The UK Financial Conduct Authority (FCA) recently took enforcement action against an allegedly illegal cryptocurrency business. According to the FCA, the crypto-asset flows involved in this business are huge, and it is believed that more than 1 billion pounds of unregistered crypto-assets are bought and sold through this channel. The two suspects involved, aged 38 and 44 respectively, have been released on bail after questioning by the FCA.

As part of the arrest and search, London's Metropolitan Police conducted a search of the suspect's home and seized a number of digital devices related to the illegal business. The operation comes courtesy of new powers recently granted to police to seize and freeze crypto assets involved in fraud investigations.

Therese, executive director of enforcement and market surveillance at the FCA Chambers made it clear that the FCA is committed to preventing illegal crypto activities from entering the UK financial system. She emphasized: "The FCA plays a key role in intercepting the flow of illegal funds into the British financial system. This arrest shows our determination and we will spare no effort to prevent cryptocurrency companies from operating illegally in the UK."

Although the FCA has previously been criticized for not acting quickly enough on enforcement, as of January 2021, the agency has begun requiring all businesses involving crypto assets to register to ensure compliance with UK money laundering regulations and to combat financial crime, including terrorism. Financing and illegal fund transfers.

Since the registration requirement was implemented, more than 300 businesses have applied to register to provide cryptocurrency-related services, but so far, only about 44 companies have successfully completed the registration process. This data reflects the FCA’s efforts to strengthen supervision and improve industry compliance, while also revealing the challenges for cryptocurrency companies in meeting regulatory requirements.

Registration requirements and compliance determination

The UK Financial Conduct Authority (FCA) has made it clear that all businesses providing specific crypto-asset services must be registered with the FCA in accordance with anti-money laundering regulations (MLR) and strictly follow established rules and regulations. The FCA has the power to issue instructions and impose restrictions on crypto businesses under the MLR authority, which reflects its determination and ability to regulate the cryptocurrency market.

The FCA regularly issues warnings to UK citizens about the risks associated with crypto-assets to raise public awareness of illegal or irregular cryptocurrency operations. In addition, the FCA maintains a list of suspected unregistered businesses to help investors and consumers avoid dealing with these businesses and thereby protect themselves from fraud and illegal activity.

FCA said it would not comment on the ongoing investigation. The agency will reserve its opinion until the investigation has a clear outcome. The FCA is committed to providing updates to the public in due course as further information and developments become available.

Conclusion

This enforcement action by the UK Financial Conduct Authority (FCA) highlights its firm determination to strengthen supervision and combat illegal financial activities in the cryptocurrency field. Working closely with the Metropolitan Police, the FCA has demonstrated its ability to track, arrest and prosecute individuals involved in illegal cryptocurrency trading. These actions not only protect consumers and market integrity, but also send a clear signal to all cryptocurrency businesses: compliance with regulations and upholding the law are a prerequisite for business operations.

Although the FCA faces challenges in enforcing regulatory measures, it has made positive progress by implementing registration requirements and strengthening enforcement. As it continues to crack down on illegal activity and educate compliant businesses, the FCA is working hard to create a safer and more transparent environment for the UK's financial markets. As the investigation deepens, the FCA will continue to take necessary measures to ensure the health and stability of the financial market while protecting the interests of investors.

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