FCA Targets Three London P2P Crypto Sites With HMRC, Police

The UK Financial Conduct Authority has carried out further operations with law enforcement partners against illegal peer-to-peer crypto trading in London.

The regulator worked with HM Revenue & Customs and the Metropolitan Police Service to target three premises suspected of being involved in illegal peer-to-peer crypto trading.

London's trading industry is coming home!

The operation follows the FCA's April action against illegal peer-to-peer crypto trading businesses in London. Evidence gathered during that action is being used to support criminal investigations and other enforcement measures.

Three Sites Receive Crypto Cease Orders

Cease and desist letters were issued at all three locations, requiring the traders to stop any suspected illegal crypto businesses.

Peer-to-peer crypto trading involves individuals buying and selling crypto directly with each other. Where the activity is carried out by way of business in the UK, the operator must have appropriate registration with the FCA.

There are currently no FCA-registered peer-to-peer crypto businesses operating in the UK.

The FCA said unregistered peer-to-peer traders operating by way of business can provide a route for criminals to move and launder illicit funds. Such operators are outside the FCA registration regime and therefore do not operate within controls designed to detect and prevent money laundering.

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

FCA Pursues Illegal ATMs, Crypto Exchange

The Metropolitan Police Service said cryptocurrency can create challenges for law enforcement because funds can be moved quickly across jurisdictions.

The regulator has also taken action against other forms of illegal cryptoasset activity in the UK.

In one case, the FCA prosecuted the operator of an unlawful crypto ATM network. It has also supported the arrest of two individuals suspected of operating an illegal crypto exchange.

This article was written by Tareq Sikder at www.financemagnates.com.