The Financial Conduct Authority (FCA) has taken action against illegal peer-to-peer crypto trading, targeting three suspected unregistered businesses in London as part of a joint operation with HM Revenue & Customs (HMRC) and the Metropolitan Police.

The operation, which took place on 10 September, saw cease and desist letters issued to traders operating from three premises suspected of conducting unauthorised crypto asset trading activity. The FCA said the letters require those involved to immediately stop any suspected illegal crypto business.

The regulator warned that anyone carrying out peer-to-peer crypto trading “by way of business” in the UK must be appropriately registered with the FCA. It added that there are currently no FCA-registered peer-to-peer crypto trading businesses operating in the UK.

Peer-to-peer crypto trading allows individuals to buy and sell digital assets directly with one another. However, the FCA said unregistered businesses can create opportunities for criminals to move and launder illicit funds by operating outside the UK's anti-money laundering regime.

Steve Smart, executive director of enforcement and market oversight at the FCA, said:
“Working with partners, we continue to track and disrupt illegal crypto activity. Anyone running an unregistered peer-to-peer crypto business should assume we are looking at them.”

The Metropolitan Police said cryptocurrency-related crime continues to present significant challenges for investigators due to the speed at which digital assets can be transferred across jurisdictions.

Detective Sergeant Sathish Alalasundaram said: “Law enforcement and partner agencies are working significantly hard to tackle criminal activity involving digital assets. The complex nature of cryptocurrency, combined with the speed at which funds can be moved across jurisdictions, presents ongoing challenges for those investigating.

“As criminals continue to adapt their methods, the Met Police continues to evolve and adapt our investigative capabilities and disruption tactics to bring those who break the law to justice.”

The latest operation follows similar enforcement action carried out in April, with evidence gathered during that investigation now supporting ongoing criminal inquiries and further regulatory action.

The FCA said the action forms part of its wider efforts to tackle illegal crypto asset activity. Recent enforcement measures have included prosecuting the operator of an unlawful crypto ATM network and supporting the arrest of two individuals suspected of running an illegal cryptocurrency exchange.

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