UK tightens crackdown on crypto and arrests traders

The UK Financial Conduct Authority (FCA), along with the Metropolitan Police Service, has arrested two co-founders of a cryptocurrency exchange. They are suspected of running an unregistered business that handled more than £1 billion (approximately $1.26 billion) in crypto assets.

The activity highlights efforts to combat illicit transactions in the crypto industry.

The UK FCA investigates unidentified persons

Officers conducted extensive searches of business premises linked to the 38- and 44-year-old suspects. Investigators raided two residential properties in London, seizing a number of digital devices.

After these proceedings, the two men were interrogated and later released on bail. However, the FCA does not share information about the names of individuals or their companies. Hence, the ongoing investigation emphasizes the complexity of the case.

In the UK, cryptocurrency exchanges must register with the FCA and adhere to the country’s anti-money laundering regulations. This requirement prevents, for example, the crypto market from becoming a channel for illegal activities.

Therese Chambers, executive director of enforcement and market oversight at the FCA, reinforced the agency’s commitment.

“The FCA plays a key role in keeping dirty money out of the UK financial system. These arrests show we will do everything we can to stop crypto companies from operating illegally in the UK. he said Rooms.

Also, this incident is not the FCA’s first crackdown on crypto non-compliance. In October 2023, the company fined ATM Investor Services International $7.8 million. The New York City-based commodities brokerage was fined for failing to comply with anti-money laundering standards.

Since October, the FCA has intensified its regulatory framework, particularly in relation to crypto marketing. Any company promoting crypto assets to UK customers without adhering to the new guidelines will face stiff fines.

These penalties include an unlimited fine or imprisonment for up to two years. In line with these regulations, the FCA has provided examples on its website illustrating good and bad practice in preparation for the application of these marketing rules.