The FCA and the Metropolitan Police have arrested two people suspected of running an illegal cryptoasset exchange.

More than £1 billion of unregistered crypto assets are believed to have been bought and sold through the business.   

The FCA inspected the offices associated with the suspects (aged 38 and 44) 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. They have not yet been named.

The FCA’s investigation into the case is ongoing.   

Therese Chambers, executive director of enforcement and market oversight at the FCA said: “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.” 

Since 10 January 2021, cryptoasset businesses 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). 

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.  

Only 14% of crypto-asset business registrations submitted to the FCA have been approved by the regulator since it became the crypto market supervisor.

Just 45 out of a total of 320 applications for registrations determined led to a crypto-asset businesses being registered.