FCA arrests two suspects involved in a $1.2 billion illegal crypto asset exchange, highlighting the agency’s efforts to combat financial crime.

The Financial Conduct Authority (FCA) in the United Kingdom has arrested two individuals suspected of operating an illegal crypto asset exchange. According to a statement released on June 19, the unregistered business is believed to have conducted transactions exceeding 1 billion British pounds ($1.2 billion) in value. During raids on offices linked to the suspects, the FCA seized multiple digital devices.

FCA Compliance and Enforcement

Therese Chambers, the FCA's executive director of enforcement and market oversight, emphasized the regulator's crucial role in preventing illegal financial activities in the U.K.:
“These arrests show we will do everything in our power to stop crypto firms from operating illegally in the U.K.”

The two suspects were interviewed and released on bail, and the investigation remains ongoing.

Registration Requirements

Since January 2021, operators of crypto asset exchanges in the U.K. are required to register with the FCA and comply with money laundering regulations to operate legally. Charlotte Tregunna, a partner at the business crime law firm Peters & Peters, noted:
“Given that these exchange requirements have been active for so long, it would be difficult to persuade the FCA that it is unaware of any requirements.”

Tregunna added that this case could highlight both the FCA's enforcement capabilities and the ongoing need for regulatory clarity in the crypto sector.

Regulatory Context

The upcoming general election in the U.K., scheduled for July 4, has disrupted the country's progress toward comprehensive crypto regulation. Tregunna stressed the importance of continued regulatory efforts:
“Whomever wins the election in July should make it a priority to steer the UK back onto the regulatory path it was previously heading towards. And they should pick up the pace while they’re at it!”

Conclusion

This case underscores the FCA's commitment to enforcing compliance among crypto asset exchanges and highlights the importance of regulatory adherence in the rapidly evolving digital asset landscape. As the U.K. moves toward further regulatory clarity, the outcome of the upcoming general election could significantly impact the future of crypto regulation in the country.