London police apprehend two suspects for operating unlicensed cryptocurrency exchange worth £1 billion

Two individuals have been apprehended by the Financial Conduct Authority (FCA) on suspicion of running an unregistered cryptocurrency exchange that is believed to have facilitated over £1 billion in transactions. The suspects, aged 38 and 44, were arrested during a search of their London offices, while the Metropolitan Police seized digital devices from two residential properties in the city.

According to the FCA, the exchange in question was operating without proper authorization and had not complied with UK money laundering regulations. As a result, the agency has launched an investigation into the matter, with more than £1 billion worth of unregistered crypto assets being bought and sold through the illegal exchange.

Executive Director of Enforcement and Market Oversight at the FCA, Therese Chambers, stated that the agency has a crucial role in preventing illicit funds from entering the UK financial system. She further added, “These arrests demonstrate that we will take all necessary measures to prevent crypto companies from operating illegally in the UK.”

These arrests come amidst a global crackdown on cryptocurrency companies following the collapse of several major firms in the industry, resulting in significant financial losses for investors. One such example is the high-profile collapse of FTX, a cryptocurrency exchange run by Sam Bankman-Fried, who was sentenced to 25 years in prison for defrauding customers and investors.

In a separate incident, Changpeng “CZ” Zhao, the founder of Binance, the largest cryptocurrency exchange in the world, was sentenced to four months in prison in April for allowing money laundering on his platform. Although Zhao resigned from his position in November, Binance continues to operate and remains the top crypto exchange in terms of transaction volumes.

At present, the FCA has a register of 45 authorized crypto companies that are permitted to operate in the UK, including spinoffs established by major financial institutions such as Fidelity, Standard Chartered, and Nomura. However, the regulator also maintains a list of over 13,000 crypto companies suspected of operating illegally in the country.

Furthermore, the FCA mandates that registered crypto firms must comply with UK money laundering regulations to operate lawfully. This recent crackdown serves as a reminder that the agency is committed to ensuring the integrity of the UK’s financial system and will take decisive action against those who operate outside the law.

For more news updates, visit Sky News and stay informed about the latest developments.

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