Two people in the UK have been arrested on suspicion of money laundering and running an illegal crypto asset exchange with seven crypto ATMs also seized in an operation undertaken by police and the UK financial services watchdog The Financial Conduct Authority (FCA).
As part of an operation led by the 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."
Misuse
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.'
The FCA warned that 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, the FCA said in a statement announcing the action.
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) Act.
