The UK Financial Conduct Authority, alongside HM Revenue and Customs and the Metropolitan Police, conducted a joint operation on September 10 targeting three London locations. These premises were suspected of hosting illegal peer-to-peer cryptocurrency trading activities. Authorities issued cease and desist orders to the operators involved.
This action follows a previous sweep conducted in April, which provided evidence currently supporting ongoing criminal investigations. The FCA maintains that no peer-to-peer crypto business is currently registered in the UK. According to the regulator, such unregistered entities operate outside anti-money laundering controls, potentially facilitating the movement of illicit funds.
Steve Smart, the FCA executive director of enforcement, stated that the regulator is actively monitoring unregistered peer-to-peer crypto operations. Law enforcement officials noted that the technical complexity of crypto assets and the speed of cross-border transactions present significant investigative challenges, requiring constant adaptation of disruption tactics.
The FCA has previously taken legal action in this sector, including the prosecution of Olumide Osunkoya, who received a four-year sentence for operating an unlawful crypto ATM network. The agency also supported the arrest of two individuals linked to an illegal exchange. Current enforcement relies on 2017 money laundering regulations.
A broader regulatory framework for the sector is scheduled to take effect on October 25, 2027. The FCA will begin accepting applications for authorization under this new regime starting September 30. Until then, the regulator continues to use existing legislation to address unauthorized trading activities across the country.
