FCA busts suspects in $1.2B in illegal crypto asset trading
The Financial Conduct Authority (FCA) in the United Kingdom has announced the arrest of two individuals suspected of illegal crypto asset trading.
On June 19, the FCA said the illegal trade is believed to have bought and sold more than 1 billion British pounds ($1.2 billion) worth of unregistered crypto assets. In raids on offices linked to the suspects, the FCA seized a number of digital devices.
Compliance with the FCA
Therese Chambers, executive director of enforcement and market surveillance at the FCA, said the regulator would play an “important role” in keeping “dirty money out of the UK financial system”.
“We will do everything we can to prevent these crypto companies from operating illegally in the UK.”
The FCA has spoken to the two suspects who have been arrested and released on bail as investigations continue.
In the UK, crypto asset exchange operators must register directly with the FCA and comply with financial reference regulations to ensure legal operations. This is from January 2021.
Charlotte Tregunna, a crypto fraud expert and commercial crime law firm Peters & Peters, said that while these exchange requirements have been active for a long time, it will be “difficult to convince the FCA” that it is unaware of any requirements. .
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“Furthermore, if you've applied for FCA registration and you're one of the 86%. [of exchanges] It was rejected and carried on regardless,” she added
“While this points the way for the FCA to successfully demonstrate its ability to crack down on unruly exchanges, it is a sad indictment of the lack of regulatory transparency for market participants and service providers. Keep an ear on the horizon.”
Electoral influence
The United Kingdom is currently in the midst of a general election on July 4th.
Treguna said the vote had “set back” the UK's path to full crypto regulation. However, crypto service providers should be aware that they must be registered with the FCA.
“Whoever wins the election in July must make it a priority to get the UK back to the way it used to be. And they have to pick up the pace as they go!
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