In a significant move, the UK’s Financial Conduct Authority (FCA) has arrested two individuals suspected of running an illegal crypto asset exchange. The FCA announced on June 19 that the unregistered business is believed to have handled transactions exceeding 1 billion British pounds ($1.2 billion). During the raids, authorities seized multiple digital devices from the suspects’ offices.
Therese Chambers, the FCA’s executive director of enforcement and market oversight, emphasized the agency’s commitment to maintaining the integrity of the UK’s financial system. “These arrests show we will do everything in our power to stop crypto firms from operating illegally in the U.K.,” she stated.
The suspects have been interviewed and released on bail as the investigation continues. The FCA has been stringent about its regulations since January 2021, requiring all crypto asset exchanges to register and comply with anti-money laundering laws.
Charlotte Tregunna, a crypto fraud expert at the law firm Peters & Peters, highlighted the challenges for firms trying to operate without FCA registration. She noted, “Given these requirements have been active for so long, it would be difficult to persuade the FCA that a firm was unaware of them.”
The recent arrests come at a critical time as the UK prepares for a general election on July 4. Tregunna pointed out that the election has delayed the UK’s progress toward comprehensive crypto regulation. She urged that the new government prioritize bringing clarity and efficiency to crypto regulations post-election.
As the crypto industry continues to grow, the FCA’s actions signal a clear warning to illegal operators: compliance is not optional, and the authorities are prepared to enforce the law rigorously.