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 a small number of registered firms carry on peer-to-peer crypto activities as part of broader services, but no solely FCA-registered peer-to-peer crypto businesses operate in the UK.
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 (Information on the Payer) Regulations 2017. The regulator did not identify the premises or announce arrests, charges or findings against named individuals. The letters require traders to stop any suspected illegal crypto businesses.
ENFORCEMENT FOLLOW-UP
The FCA said it has a track record of tackling illegal cryptoasset activity. Its earlier actions include prosecuting the operator of an unlawful crypto ATM network and supporting the arrest of two individuals suspected of running an illegal crypto exchange. Crypto remains largely unregulated in the UK, except for anti-money-laundering and financial promotion rules, until October 2027.