Regulation
This is why the UK FCA arrested the co-founders of Crypto Exchange
The UK’s Financial Conduct Authority (FCA), working with the Metropolitan Police Service, has apprehended two co-founders of a crypto exchange. They are suspected of operating an unregistered business that handled more than £1 billion (around $1.26 billion) in crypto assets.
The move highlights efforts to combat illicit transactions in the crypto sector.
UK FCA investigates anonymous individuals
Authorities carried out extensive inspections at business premises linked to the suspects, aged 38 and 44. They also searched two residential properties in London and seized several digital devices.
Following these acts, both individuals were questioned under caution and then released on bail. However, the FCA did not share information on the names of the individuals or their companies. The FCA’s ongoing investigation highlights the complexity of the matter.
Learn more: Crypto regulation: what are the advantages and disadvantages?
In the UK, crypto exchanges must register with the FCA and comply with the country’s anti-money laundering regulations. This requirement underlines the FCA’s commitment to maintaining financial integrity and preventing the crypto market from becoming a conduit for illicit activity.
Thérèse Chambers, Executive Director of Enforcement and Market Surveillance at the FCA, reinforced the agency’s dedication to its role.
“The FCA has an important role to play in stopping dirty money entering the UK financial system. These arrests show that we will do everything in our power to stop crypto companies operating illegally in the UK,” Chambers said.
Additionally, this incident is not the FCA’s first action against non-compliance. In October 2023, the FCA fined $7.8 million on ADM Investor Services International. This New York-based commodities broker was penalized for failing to comply fight against money laundering standards.
Learn more: How does regulation impact crypto marketing? A complete guide
Since October, the The FCA has intensified its regulatory frameworkparticularly with regard to marketing of crypto assets. Any business promoting cryptoassets to UK customers without following the new guidelines faces heavy penalties.
These include unlimited fines or imprisonment of up to two years. In accordance with these regulations, the FCA has also provided examples on its website of good and bad practice for applying these marketing rules.
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