Benzinga - In a recent development, two individuals have been detained by law enforcement on suspicions of running an unauthorized cryptocurrency exchange. The platform is alleged to have facilitated trades exceeding £1 billion ($1.26 billion) in cryptocurrency.
What Happened: The suspects, aged 38 and 44, had their offices in London searched by the Financial Conduct Authority (FCA), The Independent reported on Thursday. In addition, the Metropolitan Police seized multiple digital devices from two residential properties in the city. Both suspects were interviewed under caution by the FCA and later released on bail. The FCA’s investigation into the matter is ongoing.
The illicit exchange is believed to have facilitated the buying and selling of over £1 billion of unregistered crypto assets. This comes amidst a global crackdown on crypto companies, following the collapse of several industry giants, leading to substantial losses for investors.
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Why It Matters: The U.K. government has been actively working on its crypto regulations, with plans to have legislation in place by June or July for stablecoins, crypto staking, exchanges, and custody.
Furthermore, the FBI issued a warning later that month against unregistered cryptocurrency services, emphasizing the importance of adhering to Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations.
This recent arrest aligns with global regulatory efforts as authorities continue to clamp down on unregistered crypto services. Earlier in 2024, the Securities and Exchange Commission (SEC) settled with TradeStation Crypto, Inc., over charges related to the unregistered offer and sale of a crypto asset lending product.
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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
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