The UK Financial Conduct Authorities (FCA), working with the Metropolitan Police Service, has conducted an operation to arrest two individuals, aged 38 and 44, suspected of running an illegal cryptoasset exchange.
More than £1 billion of unregistered cryptoassets are believed to have been bought and sold through this business.
The FCA inspected the offices associated with the suspects and the police seized several digital devices during searches of two residential London properties.
Both suspects were interviewed under caution by the FCA and released on bail. The FCA’s investigation into the case is ongoing.
Cryptoasset exchange providers must be registered with the FCA and comply with the UK money laundering regulations in order to operate legally in the UK.
Since 10 January 2021, cryptoasset businesses providing certain cryptoasset services in the UK must be registered with the FCA under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs).
Cryptoasset businesses need to be registered with the FCA under the MLRs, and comply with the requirements of the regulations, if they intend to provide certain cryptoasset services by way of business, and in the UK.
Under the MLRs the FCA can impose directions on cryptoasset businesses which can prohibit them from operating. It is a criminal offence to breach a direction imposed under the MLRs.