In a significant move, the UK's Financial Conduct Authority, in collaboration with HMRC and the South West Regional Organised Crime Unit, has launched a coordinated effort to tackle unlicensed peer-to-peer cryptocurrency trading platforms. The operation resulted in the issuance of cease-and-desist notices at eight locations across London, with evidence gathered to support multiple ongoing criminal investigations. According to the FCA, these platforms were suspected of facilitating direct crypto transactions between individuals without adhering to mandatory registration and anti-money laundering protocols. UK law dictates that crypto exchange providers must register with the FCA, yet currently, no peer-to-peer crypto traders or platforms are registered.
The FCA's executive director of enforcement and market oversight emphasized that unregistered operators are acting illegally and pose a substantial risk of financial crime. Law enforcement views this operation as a crucial step in severing channels used for illicit fund transfers.
The action is part of broader enforcement efforts, including past prosecutions of illegal crypto ATM operators and the arrest of individuals linked to unregistered crypto exchanges. As the UK prepares to implement a comprehensive crypto regulatory framework by October 2027, the FCA is urging consumers to verify the registration status of firms using its online register, warning of potential risks and lack of protections when dealing with unregistered entities.