The UK Financial Conduct Authority targeted three London premises suspected of operating illegal peer-to-peer crypto businesses. The operation took place on 10 September and was announced by the regulator on 17 September. It was conducted with HM Revenue & Customs and the Metropolitan Police Service. Cease-and-desist letters were issued at all three premises.
The action followed an April operation in which the FCA and partner agencies targeted eight London premises. Evidence collected during that earlier operation is supporting criminal investigations and other enforcement work, according to the regulator. The FCA said no peer-to-peer crypto businesses are currently registered with it. Reuters independently confirmed the latest operation and the three letters.
REGISTRATION AND FINANCIAL-CRIME CONTROLS
Peer-to-peer trading allows individuals to buy and sell crypto directly with one another. Anyone conducting that activity as a business in the UK must hold the appropriate registration. The FCA said unregistered operators can provide a route for moving or laundering illicit funds because they operate outside controls intended to detect and prevent money laundering.
The September action was taken under the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017. The regulator did not identify the premises or announce arrests, charges or findings against named individuals. The letters require traders to stop suspected illegal activity but do not themselves amount to criminal convictions.
ENFORCEMENT FOLLOW-UP
The FCA has used a sequence of inspections, cease-and-desist letters and criminal cases to address unregistered crypto activity. Its earlier actions include prosecuting the operator of an unlawful crypto ATM network and supporting arrests linked to a suspected illegal crypto exchange. The latest operation broadens that enforcement work while the UK prepares a more comprehensive crypto regulatory framework.
The immediate issue remains compliance with existing registration and anti-money-laundering requirements rather than the future regime. The next milestone will be whether evidence from the September operation leads to investigations, charges or other enforcement action. Any such outcome will require a separate announcement and should not be inferred from the letters alone.