The UK's Financial Conduct Authority has conducted a second round of enforcement operations against peer-to-peer crypto traders in London, issuing cease and desist letters at three premises alongside HM Revenue & Customs and the Metropolitan Police.
The action took place on September 10 under the 2017 money laundering regulations and follows an initial sweep in April. Evidence from that earlier operation is now supporting criminal investigations.
Registration Requirements and Enforcement Challenge
Anyone buying and selling cryptocurrency directly with others as a business in the UK must be registered with the FCA. Currently, there are no registered peer-to-peer crypto businesses operating in the UK, meaning every such operation in the country is unregistered by definition.
Unregistered traders operate outside anti-money laundering controls that registration would impose, creating a potential route for moving and laundering criminal funds. Steve Smart, the FCA's executive director of enforcement and market oversight, stated: "Anyone running an unregistered peer-to-peer crypto business should assume we are looking at them."
Investigative Challenges
Detective Sergeant Sathish Alalasundaram of the Metropolitan Police highlighted the practical difficulties of investigating crypto-related crimes. The complexity of cryptocurrency and the speed at which funds can be moved across jurisdictions present ongoing challenges for investigators, he said, noting that law enforcement is adapting its disruption tactics as criminal methods evolve.
Previous Enforcement and Regulatory Changes
The FCA has previously secured prosecutions in this area, including a four-year sentence for Olumide Osunkoya over an unlawful crypto ATM network and supporting the arrest of two people suspected of running an illegal exchange.
Cryptocurrency remains largely unregulated in Britain aside from money laundering rules and financial promotions regulations. This is expected to change on October 25, 2027, when the FCA's new regulatory regime takes effect. Applications for authorization under the new framework are set to open on September 30, 2027.
