FCA Cracks Down on Unregistered London Crypto Businesses

The Financial Conduct Authority (FCA) has taken action against three London premises suspected of operating unregistered peer-to-peer crypto businesses. Working in partnership with HMRC and the Metropolitan Police, FCA inspectors visited the commercial sites on September 10. Cease-and-desist notices were issued to the affected businesses.

The crackdown is part of a wider effort by the FCA to regulate the UK's crypto market. The regulator has emphasized that physical or peer-to-peer businesses operating outside the framework of anti-money laundering registration and financial promotions will remain enforcement targets.

The distinction between licensed exchanges and unregistered P2P businesses matters, as the UK is in the process of overhauling its crypto regulations. The FCA's new authorisation gateway opens at the end of September, but firms already face rules around anti-money laundering registration and financial promotions.