The FCA has carried out further operations with partner agencies to disrupt illegal peer-to-peer crypto trading across multiple locations in London.

Three London Premises Targeted

Working with HM Revenue & Customs (HMRC) and the Metropolitan Police Service, the FCA targeted three premises suspected of being involved in illegal peer-to-peer crypto trading.

Cease and desist letters were issued at all three premises, requiring the traders to stop any suspected illegal crypto businesses.

What Is Peer-to-Peer Crypto Trading?

Peer-to-peer crypto trading involves individuals buying and selling cryptoassets directly with each other. Anyone carrying out this activity by way of business in the UK is required to have the appropriate registration.

There are currently no FCA-registered peer-to-peer crypto businesses operating in the UK.

Risks of Unregistered Crypto Trading

Unregistered peer-to-peer crypto traders operating by way of business in the UK can provide a route for criminals to move and launder illicit funds.

By operating outside the FCA’s registration regime, these businesses can avoid controls designed to detect and prevent money laundering, increasing the risks associated with financial crime.

FCA and Police Response

Steve Smart, Executive Director of Enforcement and Market Oversight at the FCA, said the regulator would continue working with partners to track and disrupt illegal crypto activity.

Detective Sergeant Sathish Alalasundaram of the Metropolitan Police Service said law enforcement and partner agencies are working to tackle criminal activity involving digital assets.

He highlighted the challenges created by the complex nature of cryptocurrency and the speed at which funds can be transferred across jurisdictions, adding that law enforcement continues to develop its investigative capabilities and disruption tactics.

Further Action Against Illegal Crypto Businesses

The latest operation follows action taken by the FCA against illegal peer-to-peer crypto trading businesses in April. Evidence gathered during that operation is being used to support criminal investigations and other enforcement action.

The FCA has also taken action against other forms of illegal cryptoasset activity, including prosecuting the operator of an unlawful crypto ATM network and supporting the arrest of two individuals suspected of running an illegal crypto exchange.

Continued Focus on Financial Crime

The FCA continues to work with partners across the UK and internationally to tackle financial crime and protect consumers from illegal cryptoasset activity.