UK Regulators Cracking Down on Unregistered Peer-to-Peer Crypto Trading
UK regulators have stepped up their crackdown on unregistered peer-to-peer crypto trading operations in London. A joint task force, including the Financial Conduct Authority (FCA), HM Revenue & Customs, and the Metropolitan Police Service, descended on three undisclosed locations on September 10, delivering cease-and-desist orders to the operators.
No arrests were made during the operation, but Steve Smart, FCA's executive director of enforcement, warned that those involved in unregistered P2P crypto operations can expect scrutiny. The core issue is that under UK law, any business facilitating peer-to-peer crypto transactions must register with the FCA under anti-money laundering regulations, which have been in place since early 2020.
However, despite these requirements, zero P2P crypto businesses are currently registered with the FCA. This has raised concerns about the risk of money laundering and financing terrorism through unregulated channels. The FCA has emphasized that it will continue to crack down on these operations, which have been deemed a substantial threat.