FCA tackles illegal peer-to-peer crypto traders

The FCA has issued cease and desist letters at three London locations as it continues to clamp down on illegal peer-to-peer crypto trading.

The regulator, which has been working with HMRC and the Metropolitan Police Service, ordered three London premises to refrain from conducting suspected illegal crypto business.

Individuals buying and selling crypto directly with each other as a business require appropriate registration in the UK to prevent criminals moving and laundering illicit funds, but there are currently no FCA-registered peer-to-peer crypto businesses operating in the UK.

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.”

Detective Sergeant Sathish Alalasundaram at the Metropolitan Police Service 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.”