UK watchdog leads first crackdown on illegal crypto trading in London
The UK's FCA has conducted its first operation against illegal crypto trading in London, issuing cease and desist letters to eight unregistered peer-to-peer trading premises.Summary
The UK Financial Conduct Authority (FCA) has spearheaded its inaugural coordinated operation targeting illegal peer-to-peer crypto trading in London. The operation involved inspecting eight London premises suspected of operating without registration and issuing cease and desist letters. This action, conducted in collaboration with HM Revenue & Customs and the South West Regional Organised Crime Unit, was carried out under the UK's money laundering and terrorist financing regulations. The FCA stated that currently, no FCA-registered peer-to-peer crypto traders or platforms are operating in the UK, implying that such activities are likely unlawful and require scrutiny. Steve Smart, the FCA's executive director of enforcement and market oversight, highlighted that unregistered traders pose a financial crime risk, potentially facilitating the movement and disguise of illicit funds for criminals. This crackdown follows a previous enforcement action in February against HTX for alleged illegal crypto promotions and precedes the FCA's consultation on the next phase of UK crypto regulation, set to take effect in October 2027.
(Source：Crypto Briefing)