The Financial Conduct Authority (FCA) has stepped up its enforcement work against illegal peer-to-peer crypto trading in London. Working alongside HMRC and the Metropolitan Police, the regulator inspected three commercial premises suspected of operating unregistered crypto businesses.
The joint action took place on September 10, with the FCA publishing details of the operation on September 17. During the visits, enforcement teams issued cease-and-desist notices and gathered intelligence from the businesses involved.
Focus on Unregistered Trading
The enforcement targeted unregistered peer-to-peer businesses rather than licensed UK exchanges. The UK is currently undergoing a wider overhaul of crypto regulation, and physical or peer-to-peer businesses operating outside the established framework remain primary targets for regulators.
Firms already face rules concerning anti-money-laundering registration and financial promotions, while the FCA's new authorisation gateway is scheduled to open at the end of September. Officials noted that the latest action is aimed squarely at the unregulated segment of the market and does not signal a shift toward targeting licensed mainstream exchanges.
Enforcement and Authorisation
The recent inspections coincide with the FCA creating clearer pathways for crypto firms aiming to operate under the incoming regulatory regime while simultaneously increasing pressure on entities operating outside the rules.
By enforcing consequences for companies that ignore the regulatory framework, the FCA aims to support legitimate firms that comply with expensive compliance requirements. The regulator's messaging indicates that while the UK welcomes crypto businesses, it increasingly expects them to operate as regulated financial institutions.
