The Financial Conduct Authority (FCA), working with HM Revenue & Customs (HMRC) and the Metropolitan Police Service, has taken further action against suspected illegal peer-to-peer (P2P) crypto trading in London.

The operation, carried out on 10 September, targeted three premises suspected of operating unregistered peer-to-peer crypto businesses. Cease and desist letters were issued at all three locations, requiring the traders to stop any suspected illegal activity. The action was carried out under UK anti-money laundering regulations, specifically the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017.

P2P trading involves individuals buying and selling crypto directly with each other. Anyone conducting such activity by way of business in the UK must be appropriately registered, although there are currently no FCA-registered peer-to-peer crypto businesses operating in the UK, according to the FCA.

The regulator said unregistered traders can provide a route for criminals to move and launder illicit funds by operating outside controls designed to detect and prevent money laundering.

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 of the Metropolitan Police Service, added: “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.”

The latest operation follows FCA action against illegal P2P crypto businesses in April, with evidence gathered then being used to support criminal investigations and further enforcement action.

The regulator has also prosecuted the operator of an unlawful crypto ATM network and supported the arrest of two people suspected of running an illegal crypto exchange.

The FCA said crypto remains a high-risk investment and is largely unregulated in the UK, apart from anti-money laundering and financial promotion requirements until October 2027.

---