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UK FCA Expands Crackdown on Unregistered Peer-to-Peer Crypto Trading

UK FCA Expands Crackdown on Unregistered Peer-to-Peer Crypto Trading

Britain's FCA, working with HMRC and police, targeted three more London premises suspected of running unregistered peer-to-peer crypto businesses and issued cease-and-desist letters as enforcement intensifies.

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The UK's Financial Conduct Authority has widened its enforcement campaign against suspected unregistered peer-to-peer crypto trading. Reuters reported that the FCA, HM Revenue & Customs and the Metropolitan Police visited three London premises and issued cease-and-desist letters ordering suspected illegal businesses to stop operating.

The action follows an earlier London sweep

The September operation follows a first enforcement round in April targeting eight sites. The FCA says evidence from that earlier sweep is supporting criminal investigations. The regulator's message is increasingly explicit: anyone operating an unregistered peer-to-peer crypto business in Britain should expect enforcement scrutiny.

UK crypto markets remain only partly regulated, but firms carrying out covered cryptoasset activities must comply with anti-money-laundering requirements. The FCA said no peer-to-peer crypto business is currently registered with it. That makes physical or informal P2P operations a direct enforcement target when authorities suspect they are facilitating unregistered exchange activity or illicit money flows.

The action adds to a broader global trend toward tighter supervision of crypto market access even as other jurisdictions open regulated routes for tokenized securities and derivatives. For traders, the distinction between regulated infrastructure and informal cash-to-crypto channels is becoming more consequential as authorities increase surveillance, registration requirements and enforcement.

Market watch

Watch for FCA criminal cases emerging from the April and September operations, additional site visits, new UK crypto legislation and any changes to registration pathways. The immediate market-price impact is limited, but the enforcement direction is relevant to exchange access, liquidity channels and the operating risk faced by UK crypto intermediaries.

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UK FCA Expands Crackdown on Unregistered Peer-to-Peer Crypto Trading

Affected markets: Crypto

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