In an important development within the UK cryptocurrency scene, authorities recently He was arrested Two people are linked to an illicit cryptocurrency exchange, said to involve more than £1 billion.
The move underscores the ongoing efforts by regulatory bodies to crack down on unregulated financial activities in the cryptocurrency sector.
Arrests made in a £1 billion crypto money laundering operation
The arrests, carried out by the Financial Conduct Authority (FCA) in collaboration with London Police, targeted a 38-year-old and a 44-year-old, who have since been released on bail pending further investigations.
This campaign occurred amid growing vigilance against money laundering activities through digital currencies. Therese Chambers, the Financial Conduct Authority's (FCA) Executive Director for Enforcement and Market Surveillance, stressed the agency's commitment to removing “dirty money” from the UK's financial ecosystem.
During the operation, authorities raided two properties in London, and confiscated several devices as part of the evidence-gathering process.
As reported by Bloomberg, under UK financial legislation, all cryptocurrency-related companies must register with the Financial Conduct Authority (FCA) and adhere to strict anti-money laundering (AML) regulations.
Furthermore, the latest measures reflect a broader initiative to tighten oversight of cryptocurrency exchanges and related services, which are under increasing scrutiny due to their potential for misuse in financial crimes.
Regulatory pressure is mounting in the UK amid tightening oversight of cryptocurrencies
Speaking of the UK regulator's crackdown, Binance, the world's largest cryptocurrency exchange, is still dealing with its legal saga with these regulators.
Recently, the cryptocurrency exchange revealed that it is trying to dismiss much of the £10 billion lawsuit filed in London, as it was accused alongside other platforms of removing Bitcoin Satoshi Vision (BSV) from its listings.
The case, which represents more than 200,000 BSV holders, alleges that the exchanges engaged in anti-competitive actions that significantly reduced the value of the digital currency, potentially costing losses of up to £9 billion.
Binance objected to specific aspects of the lawsuit but not its blanket admission under the UK class action framework.
Meanwhile, UK regulators are strengthening their control over digital asset operations. The government recently intends to enact new regulations for digital currency within six months, covering various activities from exchange operations to custodial services.
The Minister of Economy stressed that this new framework will place many crypto-asset activities under regulatory oversight for the first time.
In addition, the UK Financial Conduct Authority (FCA) is preparing to consult on a licensing regime for digital asset companies and is considering equivalence measures for international companies.
This regulatory momentum has been underscored by the Financial Conduct Authority (FCA)’s recent approval of the first set of cryptocurrency exchange-traded products (ETPs), an important step in the integration of digital assets into the UK’s financial infrastructure.
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