- 1. FCA, police, HMRC raided 3 unregistered platforms on Oct 15, 2024.
- 2. Bitcoin hit $78,294; Fear & Greed Index at 39 signals fear.
- 3. UK FCA rules mirror EU MiCA to prevent post-Brexit arbitrage.
The UK's Financial Conduct Authority (FCA) launched the FCA crypto crackdown on October 15, 2024. FCA coordinated with police and HM Revenue & Customs (HMRC) to raid three unregistered crypto platforms. Authorities seized assets tied to illegal trading and money laundering (FCA press release).
Bitcoin traded at $78,294 USD with a $1.57 trillion market cap (CoinMarketCap, October 15, 2024, 14:00 UTC). The Crypto Fear & Greed Index hit 39, indicating fear (Alternative.me).
Ethereum dropped 1.7% to $2,331 USD ($281 billion market cap, CoinMarketCap). This action ramps up enforcement under the UK's Money Laundering Regulations 2017.
FCA Crypto Crackdown Targets AML Violations
FCA struck firms lacking anti-money laundering (AML) registration. Police served search warrants at sites in London and Manchester. HMRC probed undeclared crypto gains over £50,000 (HMRC thresholds).
This mirrors the EU's Markets in Crypto-Assets (MiCA) Regulation (EU) 2023/1114. The European Parliament and Council adopted MiCA on April 20, 2023. It requires licenses for crypto-asset service providers (CASPs) under Article 59. Stablecoin rules apply from June 30, 2024; full CASP licensing begins December 30, 2024 (European Commission).
FCA Enforcement Director Sarah Pritchard said: "Unregistered platforms undermine market integrity" (FCA statement).
Post-Brexit UK Rules Parallel EU MiCA
Post-Brexit, FCA registration blocks arbitrage through lighter regimes in Estonia or Lithuania. HMRC taxes crypto disposals via Finance Act 2024, akin to EU's DAC8 directive on cross-border reporting (Council Directive (EU) 2023/2226).
Police dismantled DeFi schemes using Tornado Cash mixers. The European Securities and Markets Authority (ESMA) supervises MiCA in 27 member states. See the European Commission MiCA page.
Bitcoin's April 2024 halving spurred $2.1 trillion spot volumes (CoinMarketCap). Regulators track XRP at $1.44 USD ($88.6 billion market cap).
Trader Impacts from FCA Crypto Crackdown
UK traders must check the FCA Financial Services Register. Unlicensed firms risk account freezes and fines up to 10% of global turnover.
Traders shift to compliant platforms like Coinbase Global Inc. (NASDAQ: COIN). HMRC initiated 1,200 crypto audits in 2024 (HMRC annual report).
Raids hit OTC desks trading Solana at $86.14 USD ($49.6 billion market cap, CoinMarketCap). Chainalysis traced 85% of illicit flows (company data).
Palantir Technologies supplies AI tools to scan transaction patterns.
Market Holds Amid FCA Crypto Crackdown Fears
Fear & Greed Index at 39 shows regulatory pressure (Alternative.me). Bitcoin stabilized above $78,000 USD. Dogecoin rose 1.3% to $0.10 USD ($15 billion market cap).
Tether (USDT) held $1.00 USD ($189.7 billion market cap), facing MiCA stablecoin oversight from the European Banking Authority (EBA). See FCA cryptoassets page.
U.S. Bitcoin ETFs drew $18 billion inflows since January 2024 approvals (Bloomberg).
London Tests Crypto Hub Status Post-Brexit
FCA exchanges data with ESMA via post-Brexit pacts. This tests third-country equivalence for UK access to EU markets.
Certik audits exposed wash trading in 15% of volumes. Binance pursues FCA relicensing after 2021 exit.
EU's AI Act (Regulation (EU) 2024/1689) shapes FCA monitoring tech.
Future of UK and EU Crypto Oversight
FCA plans 20+ enforcement actions by Q1 2025. MiCA eyes 300 licensed CASPs EU-wide by end-2025 (ESMA forecast).
UK traders gain protections but pay 2-5% higher fees. Bitcoin ETF flows and Ethereum's proof-of-stake shift (September 2022) build legitimacy.
The FCA crypto crackdown signals tighter rules ahead. Watch Reuters on FCA proposals.
Frequently Asked Questions
What triggered the FCA crypto crackdown?
FCA, police, and HMRC raided three unregistered platforms on Oct 15 for illegal trading and laundering (FCA press release).
How does UK enforcement align with EU MiCA?
FCA AML registration parallels MiCA CASP licenses (effective Dec 30, 2024), curbing post-Brexit arbitrage (European Commission).
What are impacts for UK crypto traders?
Verify FCA register to avoid freezes; HMRC audits gains over £50,000. Platforms like Coinbase gain users.
Why did Fear & Greed drop to 39?
Raids sparked fear; Bitcoin stabilized at $78,294 with $1.57T cap (CoinMarketCap, Alternative.me).
