FCA Targets Three London Premises in Illegal Peer-to-Peer Crypto Trading Operation

The UK Financial Conduct Authority said on September 17 that it had carried out a further joint operation to disrupt suspected illegal peer-to-peer crypto trading across London. Working with HM Revenue & Customs and the Metropolitan Police Service, the FCA targeted three premises and issued cease-and-desist letters requiring the traders to stop the suspected businesses.

Peer-to-peer crypto trading involves people buying and selling cryptoassets directly with one another. The FCA said that anyone conducting that activity by way of business in the UK needs appropriate registration, and that there are currently no FCA-registered peer-to-peer crypto businesses operating in the country. The regulator said unregistered businesses can bypass anti-money-laundering controls and provide routes for criminals to move illicit funds.

The action took place on September 10 under the UK’s money-laundering regulations. It follows an FCA-led operation in April; the FCA said evidence from that earlier action is supporting criminal investigations and other enforcement work.

Why it matters

Traders using informal or over-the-counter crypto counterparties should distinguish between a private transaction and a business operating without the required registration. The enforcement action underlines that a convenient local cash or peer-to-peer service may face disruption, while customers can be exposed to weak anti-money-laundering safeguards and limited recourse.

What to watch next

Watch for criminal or regulatory follow-up from the FCA and its partners, and for additional operations involving suspected unregistered crypto businesses. UK users can check a firm’s permissions through the FCA’s Firm Checker before relying on a provider.