FCA Raids Illegal P2P Crypto Trading Sites in London

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The United Kingdom’s Financial Conduct Authority (FCA), working with HM Revenue & Customs (HMRC) and London’s Metropolitan Police Service, raided three premises suspected of hosting illegal peer-to-peer crypto trading and issued cease-and-desist letters at each location, the regulator said in a September 17 press release. The coordinated operation marks the second time this year the watchdog has moved against unregistered peer-to-peer crypto businesses, signaling a harder enforcement stance.

How the Operation Unfolded

The FCA targeted three London locations where traders were suspected of running unregistered peer-to-peer crypto businesses by way of business. Cease-and-desist letters were issued at all three premises, requiring the operators to stop the suspected illegal activity. “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,” said Steve Smart, executive director of enforcement and market oversight at the FCA.

Why Unregistered P2P Trading Is in the Crosshairs

Peer-to-peer trading lets individuals buy and sell crypto directly with one another, an activity that requires FCA registration when carried out by way of business. There are currently no FCA-registered peer-to-peer crypto businesses operating in the UK, the regulator said. Unregistered traders operating by way of business can provide a route for criminals to move and launder illicit funds, avoiding the controls designed to detect and prevent money laundering. The action follows guidance the FCA published earlier this week clarifying how the UK’s incoming cryptoasset regime applies to firms.

A Second Coordinated Crackdown

This operation follows the FCA’s first coordinated action against illegal peer-to-peer crypto trading businesses in April, and evidence gathered during that earlier operation is now being used to support criminal investigations and other enforcement action. Detective sergeant Sathish Alalasundaram of the Metropolitan Police Service said law enforcement and partner agencies “are working significantly hard to tackle criminal activity involving digital assets,” citing the speed at which funds can move across jurisdictions as an ongoing challenge. The regulator has separately opened a call for input on tokenised gold for UK wholesale markets, and it has previously prosecuted the operator of an unlawful crypto ATM network. Consumers can check whether a crypto firm is correctly registered using the FCA’s Firm Checker.

Source: www.kucoin.com