UK targets illegal crypto trading in London crackdown

UK targets illegal crypto trading in London crackdown

Signage is seen for the FCA (Financial Conduct Authority), the UK's financial regulatory body, at their head offices in London, Britain March 10, 2022. REUTERS/Toby Melville/File Photo Purchase Licensing Rights , opens new tab

LONDON, April 22 (Reuters) - Britain's Financial Conduct Authority (FCA) on Wednesday swooped on eight ?London addresses suspected of illegal peer-to-peer crypto trading ?in its first such operation with other agencies, the financial regulator said on Wednesday.

Working with tax officials and police ?under money laundering and terrorist financing regulations, ?the FCA said it had issued cease and desist ?letters at each site.

"Evidence obtained during the on-site inspections is ?supporting a number of ongoing criminal investigations," the FCA said in ?a statement.

Authorities want to prevent such traders from providing a route for criminals to move, disguise and spend money. Peer-to-peer traders, ?who shun centralised exchanges, have to be registered in ?Britain - and there are currently no FCA-registered peer-to-peer crypto traders here.

?Authorities ?rank crypto assets as a high-risk investment in Britain, where they remain largely unregulated, except for under anti-money laundering and financial promotion rules.

"The resources and coordination ?deployed in this ?operation show ?that the FCA isn't just making statements about its areas of focus, it ?is acting on them," said Imogen Makin, ?counsel ?at law firm WilmerHale in London.

"It seems likely that we will continue to see similar crackdowns in future as ?the ?FCA remains focused on combatting ?the risks associated with crypto and financial crime."

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