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UK Cracks Down on Unregistered Crypto Trading
17 Sep
Summary
- FCA took action against illegal peer-to-peer crypto trading.
- Three London premises were targeted for unregistered crypto businesses.
- Unregistered traders face enforcement under money laundering rules.
In a significant move against illicit financial activities, Britain's Financial Conduct Authority (FCA) has conducted an operation targeting unregistered peer-to-peer cryptocurrency trading in London. The FCA, working in conjunction with tax officials and police, executed enforcement actions at three London premises.
These locations were suspected of operating as unregistered crypto businesses. As a result, cease and desist letters were issued at each site, signaling a firm stance against non-compliant operations. Steve Smart, executive director of enforcement and market oversight at the FCA, issued a clear warning that any unregistered peer-to-peer crypto business should expect to be investigated.
Authorities highlight that unregistered peer-to-peer crypto traders are often exploited for moving and laundering illicit funds. Currently, no peer-to-peer crypto trading businesses are registered in Britain, according to the FCA. This recent crackdown follows a similar operation in April that targeted eight London addresses.
Crypto assets are categorized as high-risk investments in the UK and largely remain outside comprehensive regulation, with exceptions for anti-money laundering requirements and financial promotion rules. The operation underscores the FCA's commitment to monitoring and regulating the cryptocurrency market.
