Key facts
- The FCA, HMRC, and Metropolitan Police targeted three London premises on September 10.
- Cease and desist letters were issued to suspected unregistered peer-to-peer crypto trading businesses.
- No peer-to-peer crypto businesses are registered with the FCA in the UK.
- The operation was conducted under the 2017 Money Laundering, Terrorist Financing and Transfer of Funds Regulations.
- The FCA stated that unregistered P2P traders can facilitate the movement of illicit funds.
The UK's Financial Conduct Authority (FCA), in collaboration with HM Revenue & Customs (HMRC) and the Metropolitan Police, conducted an enforcement operation on September 10, targeting three London premises suspected of operating unregistered peer-to-peer (P2P) crypto trading businesses. Cease and desist letters were issued at all three locations.
According to the FCA, any individual or entity buying and selling crypto directly with others as a business in the UK must be registered. Currently, there are no registered P2P crypto businesses operating in the country, meaning all such operations are by definition unregistered. These unregistered traders bypass anti-money laundering controls, making them a potential conduit for criminal funds, the FCA stated.
Steve Smart, the FCA's executive director of enforcement and market oversight, warned that "Anyone running an unregistered peer-to-peer crypto business should assume we are looking at them." Detective Sergeant Sathish Alalasundaram of the Met acknowledged the challenges posed by the complexity of crypto and the speed at which funds can move across jurisdictions, noting that law enforcement is adapting its tactics to match those of criminals.
The FCA has previously taken action in this area, including securing a four-year prison sentence for Olumide Osunkoya for operating an unregistered crypto ATM network processing £2.6 million.