The Financial Conduct Authority (FCA) has led its first operation to disrupt an illegal peer-to-peer crypto trading scheme.
Working alongside HM Revenue and Customs (HMRC) and the South West Regional Organised Crime Unit (SWROCU), the FCA targeted eight locations across London suspected of hosting illegal peer-to-peer crypto trading activities.
Peer-to-peer trading refers to when individuals buy and sell crypto directly with each other instead of using centralised exchanges that are required to be authorised by the FCA.
There are currently no FCA-registered peer-to-peer crypto traders or platforms operating in the UK, making any activity of this kind illegal.
“Unregistered peer-to-peer crypto traders operating in the UK are doing so illegally and pose a financial crime risk. We will use our powers and work with partners to disrupt them,” said Steve Smart, executive director of enforcement and market oversight at the FCA.
“Consumers should protect themselves by only dealing with firms registered with the FCA and by remembering that crypto remains a high‑risk investment.”
The latest operation follows previous efforts from the financial regulator to disrupt criminal crypto activities, including the prosecution of individuals operating crypto ATMs.
“By working with our colleagues at the FCA and HMRC we are able to effectively target and disrupt unregistered peer-to-peer crypto traders operating illegally,” said DI Ross Flay of SWROCU.
“As law enforcement, we want to stop these traders providing a route for criminals to move, disguise and spend illegal money.”
