The Financial Conduct Authority (FCA) and the Metropolitan Police Service in the United Kingdom have arrested two individuals suspected of running an unregistered crypto asset exchange worth over 1 billion British Pounds ($1.2 billion).

What Happened: The operation highlights the FCA’s commitment to combating financial crimes and ensuring the integrity of the UK’s financial system.

The suspects, aged 38 and 44, were apprehended following an FCA-led inspection of their associated offices.

Additionally, the police seized several digital devices during searches of two residential properties in London.

Both individuals were interviewed under caution by the FCA and have been released on bail pending further investigation.

Therese Chambers, Executive Director of Enforcement and Market Oversight at the FCA, emphasized the importance of this operation in safeguarding the financial system.

“The FCA has an important role to play in keeping dirty money out of the UK financial system. These arrests show we will do everything in our power to stop crypto firms from operating illegally in the UK,” Chambers stated.

Crypto asset exchange providers in the UK must be registered with the FCA and comply with the country’s stringent money laundering regulations to operate legally.

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Since January 10, 2021, these businesses have been required to adhere to the Money Laundering, Terrorist Financing, and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs).

The FCA has the authority to impose directions on crypto asset businesses, including prohibiting their operation if they fail to meet regulatory standards.

The FCA continues to warn consumers about the high risks associated with unregulated crypto assets, emphasizing that there is little to no protection for individuals if things go wrong.

The FCA also maintains a list of businesses suspected of operating without proper registration, urging consumers to stay informed and cautious.

What’s Next: This development comes as the cryptocurrency industry faces increasing scrutiny and regulatory challenges worldwide.

The ongoing investigation by the FCA into this illegal operation underscores the need for stringent oversight in the rapidly evolving digital asset market.

For those interested in the future of digital finance and regulatory developments, Benzinga’s Future of Digital Assets event on Nov. 19 will provide a platform for industry leaders to discuss these pressing issues.

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