FCA Cracks Down on Unregistered Peer-To-Peer Crypto Traders

The UK Financial Conduct Authority (FCA) has launched an enforcement campaign against unregistered digital asset activity, targeting three London premises suspected of operating illegal peer-to-peer crypto trading businesses.

In a joint operation with HMRC and the Metropolitan Police on September 10, cease and desist letters were issued at all three locations, requiring traders to stop any suspected illegal crypto business. The FCA has emphasized that no peer-to-peer crypto businesses are currently registered with the regulator.

The FCA's executive director of enforcement and market oversight, Steve Smart, said, 'Working with partners, we continue to track and disrupt illegal crypto activity.' He warned that anyone running an unregistered peer-to-peer crypto business should assume they are under scrutiny. The latest operation is part of a broader crackdown on unregistered operators, who can provide a route for criminals to move and launder illicit funds.

The FCA has previously pursued cases involving crypto businesses operating without registration, including one case where a man was sentenced to four years in prison for running an illegal crypto ATM network that processed £2.6 million in transactions.