They handled this along with HM Revenue & Customs, and the Metropolitan Police. The businesses were handed cease-and-desist letters.
What are these businesses?
Peer-to-peer trading involves individuals buying and selling crypto directly with each other. However, anyone conducting P2P crypto trading by way of business in the UK must have the appropriate FCA registration. Personal P2P transactions do not require registration.
The FCA said there are currently no registered P2P crypto businesses operating in the UK.
Steve Smart, executive director of enforcement and market oversight, FCA, said,
Anyone running an unregistered peer-to-peer crypto business should assume we are looking at them.
The added concern is that unregistered operators can stay outside safeguards designed to detect and prevent money laundering.
Sathish Alalasundaram, Metropolitan Police Service, added,
As criminals continue to adapt their methods, the Met Police continues to evolve and adapt our investigative capabilities…
A long time coming
Around six months ago, the FCA was already pushing harder against crypto firms that did not follow the rules. One of the examples was the $HTX case, where major app stores were asked to restrict access for UK consumers.
The latest raids on peer-to-peer trading locations are the next step in that same direction. The focus has evolved, but the message remains.
Final Summary
- UK regulators targeted three peer-to-peer locations in London recently.
- The FCA’s latest move is in the same line as earlier action against $HTX.
