The latest enforcement action from the FCA;
The Financial Conduct Authority (FCA) has carried out further operations with partners to disrupt illegal peer-to-peer crypto trading across multiple London locations. Working with HM Revenue & Customs (HMRC) and the Metropolitan Police Service, the FCA targeted 3 premises suspected of illegal peer-to-peer crypto trading.
Cease and desist letters were issued at all 3 premises, requiring traders to stop any suspected illegal crypto businesses.
Peer-to-peer trading is when individuals buy and sell crypto directly with each other. Anyone doing this by way of business in the UK requires appropriate registration. There are currently no FCA registered peer-to-peer crypto businesses operating in the UK.
Unregistered peer-to-peer crypto traders operating by way of business in the UK can provide a route for criminals to move and launder illicit funds. By operating outside the FCA’s registration regime, they avoid 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 at the Metropolitan Police Service said: “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.
“As criminals continue to adapt their methods, the Met Police continues to evolve and adapt our investigative capabilities and disruption tactics to bring those who break the law to justice.”
This operation follows action taken by FCA against illegal peer-to-peer crypto trading businesses in April. Evidence gathered during that operation is being used to support criminal investigations and other enforcement action.
The FCA has a track record of tackling illegal cryptoasset activity, including prosecuting the operator of an unlawful crypto ATM network and supporting the arrest of two individuals suspected of running an illegal crypto exchange.
The FCA continues to work with its partners across the UK and abroad 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.
Be the first to comment