Two people were arrested on suspicion of operating illegal crypto exchanges and money laundering in an operation by the Financial Conduct Authority (FCA) and the Metropolitan Police.

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.

“If you’re operating a crypto ATM or exchange illegally, then you should expect serious consequences,” Therese Chambers, Executive Director of Enforcement and Market Oversight at the FCA, said.

“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.’

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.”

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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 is clamping down in illegal crypto networks, having previously raided Leeds and other areas of London.