Britain’s Financial Conduct Authority has taken enforcement action against three London locations suspected of operating illegal peer-to-peer cryptocurrency businesses.
The FCA worked with tax officials and police to issue cease-and-desist orders under anti-money-laundering and counterterrorist-financing laws, according to Reuters.
The regulator did not identify the premises or their operators. No criminal conviction has been established, and the enforcement action remains under investigation.
The FCA says no peer-to-peer crypto-trading business is currently registered to operate in the United Kingdom. Any such firm conducting covered exchange or custody activity therefore faces immediate registration questions.
The latest operation follows enforcement visits to eight London addresses in April. The FCA says unregistered businesses may provide channels for money laundering and sanctions evasion.
Users of cash-to-crypto or informal peer-to-peer services face both counterparty risk and the possibility that authorities will freeze or seize records and assets during an investigation.
TOKEN RECON ASSESSMENT
The United Kingdom is moving beyond online warnings and into physical enforcement against informal crypto-conversion networks.
The absence of any registered P2P operator gives the FCA a broad basis for investigating businesses presenting themselves as lawful exchange services.
Watch arrests, asset seizures, identified operators and whether the UK creates a workable registration route for compliant peer-to-peer businesses.
Sources
Reuters. FCA targets suspected illegal London crypto businesses
