FCA Arrests Two Suspects in $1.2 Billion Crypto Business

FCA Arrests Two Suspects in $1.2 Billion Crypto Business

The Financial Conduct Authority of the United Kingdom has recently taken financial criminals into custody. As per the details about the case, the apprehended party is suspected of committing fraud using crypto valued at around $1.2 billion. The arrest is indicative of the determination of the regulator to combat financial crimes.

Illegal Crypto Business Raised $1 Billion

The officials have claimed that two individuals under investigation are thought to be involved in an illegal crypto business. The FCA has stated that the illegal crypto business in question has managed to raise 1 billion pounds in funds by selling unregistered crypto-based assets.

During the raid at the criminal office, the regulators also confiscated a number of digital wallet devices that were used to store the illegally raised funds.

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Theresa Chambers is the executive director of FCA heading the enforcement and market side. She has noticed that the regulators are playing an important role in ensuring that the dirty raised funds are kept out of the UK financial systems.

She further stated that the ongoing arrests indicated that the FCA is ready to utilize the full extent of its power to stop illegal crypto firms from starting and running illegal businesses within the UK.

The FCA officials have also shared the details of the interview with the two criminals involved in the case. At present, the criminals are out on bail. However, the officials have confirmed that the investigation into the case is still open.

UK Laws for Crypto Trading Platforms

In the UK, crypto trading platforms are required to register with the FCA directly in order to comply with the local money laundering laws. The law has been in effect since January 2021.

The authorities have noticed that laws for crypto trading platforms have been in place for a long time and it is going to be a difficult idea for the industry stakeholders to convince FCA about not having any awareness of these legal requirements.

Additionally, she added that if a trading platform has already applied for registration with FCA, it should be clear that only 86% has been denied. However, she exclaimed that regardless of their registration status, the firms have continued to operate regardless.

She also noted that in the case of the ongoing crypto investigation, FCA can be seen taking a successful crackdown on an illegal entity. However, despite the market participants are looking for regulatory clarity from UK regulators in order to navigate through the nuisances of the nascent industry.  

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Crypto Policies and UK Elections

Much like in the United States, the voters in the UK are also treating crypto policies of the politicians that are participating in this year’s general elections.

The elections are to be held on 4th July and as per Tregunna, the elections have paused the comprehensive regulatory framework preparations taking place in the UK. However, crypto firms are asked to apply for a registration with FCA.

She also stated that regardless of the election results, UK regulators will reinforce the regulatory process as a priority in July. She explained that July will reset the pace of the crypto regulatory process to the same pace as before.

She further projected for the firms to accelerate their efforts to prepare and implement a detailed crypto regulatory framework. 

Another report shared the details about Travel Rule requirements for crypto firms. For context, it is important to note that the Travel Rule is a financial regulatory requirement implemented by the Financial Action Task Force.

Under the regulatory requirements, crypto firms that are currently operating in the UK have to verify and share transaction details of digital assets with relevant firms. The nation implemented the Travel Rule as of September 2023 for all digital asset firms operating within its jurisdiction.

Author: Isacco Genovesi

Isacco writes news articles, reviews and guides about cryptocurrencies including technical analysis, blockchain events, coin prices marketcap and detailed reviews on crypto exchanges and trading platforms.

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