Two individuals suspected of running an illegal cryptoasset exchange have been arrested following an investigation by the Financial Conduct Authority (FCA).

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

Cryptoasset exchange providers must be registered with the FCA and comply with the UK money laundering regulations in order to operate legally in the UK.

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. The regulator’s investigation into the case is ongoing.

“The FCA has an important role to play in keeping dirty money out of the UK financial system,” executive director of enforcement and market oversight at the FCA, Therese Chambers, said.

“These arrests show we will do everything in our power to stop crypto firms from operating illegally in the UK.”

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