The Financial Conduct Authority (FCA)
has carried out its first operation with
partners to disrupt illegal peer-to-peer crypto
trading across multiple London
locations.
Working with HM Revenue & Customs
(HMRC) and the South West Regional Organised Crime Unit (SWROCU),
the FCA targeted 8 premises suspected of illegal peer-to-peer
crypto trading. The FCA issued cease and desist letters at each
site, notifying traders to stop illegal activity immediately.
Evidence obtained during the on-site inspections is supporting a
number of ongoing criminal investigations.
Peer-to-peer trading is when
individuals buy and sell crypto directly with each other, rather
than using a centralised exchange and requires appropriate
registration. There are currently no FCA‑registered peer-to-peer
crypto traders or platforms operating in the UK.
Steve Smart, executive director of
enforcement and market oversight at the FCA said: “Unregistered
peer-to-peer crypto traders operating in the UK are doing so
illegally and pose a financial crime risk. We will use our powers
and work with partners to disrupt
them.
“Consumers should protect themselves
by only dealing with firms registered with the FCA and by
remembering that crypto remains a high‑risk investment.”
DI Ross Flay of SWROCU said: “By
working with our colleagues at the FCA and HMRC we are able
to effectively target and disrupt unregistered peer-to-peer
crypto traders operating illegally. As law enforcement,
we want to stop these traders providing a route for criminals to
move, disguise and spend illegal
money.”
The FCA has previously taken action
against unregistered cryptoasset activity in the UK, including
prosecuting an individual operating an illegal network of crypto
ATMs. In June 2024, the FCA worked with the Metropolitan Police
Service to arrest 2 individuals suspected of running an illegal
cryptoasset exchange.
The Government's National Risk
Assessment of Money Laundering and Terrorist
Financing outlines how cryptoassets are
increasingly used to launder the proceeds of
crime. The FCA continues to work with domestic and international
partners to fight financial crime and protect
consumers.
Consumers can
check whether a crypto firm is correctly registered
with the FCA using the FCA's
Firm Checker.
Notes to
Editors
-
Action was taken under the Money
Laundering, Terrorist Financing and Transfer of Funds
(Information on the Payer) Regulations 2017.
-
Crypto is a high-risk investment and
remains largely unregulated in the UK, except for anti-money
laundering and financial promotion.
-
Use the FCA's Firm Checker to check a firm's permissions.
-
The FCA enables a fair and thriving
financial services market for the good of consumers and the
economy. Find out more about the
FCA.
