Two individuals have been arrested on
suspicion of money laundering and running an illegal cryptoasset
exchange.
As part of an operation led by the
Financial Conduct Authority (FCA) and the Metropolitan Police
Service, four premises across southwest London were searched.
During the search, seven crypto ATMs were also found and seized
by the FCA.
Therese Chambers, Executive Director
of Enforcement and Market Oversight at the FCA,
said, “If you're
operating a crypto ATM or exchange illegally, then you should
expect serious consequences. There are currently no
legally-operated crypto ATMs in the UK, so using one only
supports crime. We will continue to partner with law enforcement
agencies to fight financial crime and protect
consumers.”
Detective Inspector Geoff Donoghue, of
the Met's Cryptocurrency Team, said: “Our team is committed to
working alongside our partners to address the growing threat of
the misuse of cryptocurrencies.
“As cryptocurrency usage evolves, so
does our efforts to safeguard our communities. This operation
with the FCA shows our determination to keep Londoners safe from
financial criminals.”
It is illegal to operate a cryptoasset
exchange or a crypto ATM in the UK without FCA registration.
Failure to comply with money laundering regulations is also a
criminal offence.
The two suspects were interviewed
under caution and released under investigation while enquiries
continue.
Notes to
editors
-
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).
-
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.
-
The FCA regularly warns consumers
that cryptoassets are unregulated and high-risk, which means
people are very unlikely to have any protection if things go
wrong.
-
The FCA publishes
a list of businesses that it suspects are operating without our
registration. Find out more information about the FCA.
