UK Regulator Cracks Down on Unregistered Peer-to-Peer Crypto Trading Operations

The Financial Conduct Authority (FCA) has launched a significant crackdown on unregistered peer-to-peer crypto trading operations in the UK. In a coordinated effort, the regulator has teamed up with HM Revenue & Customs (HMRC) and the South West Regional Organised Crime Unit to disrupt money laundering networks.

According to the FCA, all P2P crypto traders in the UK are operating illegally due to a lack of registration. This is in contrast to previous approaches where the regulator targeted specific illegal activities such as unauthorized ATMs or unlicensed exchanges.

The raids aim to stop unregistered traders from helping criminals move money and hide its origins. The FCA wants to shut down these operations before they can process more illicit funds, working with partners who know how to investigate criminal enterprises.

Registration for crypto businesses has been mandatory in the UK since 2020, but enforcement was previously spotty. Now, the regulator is actively hunting down unregistered operations and has sent a clear message that operating without registration will no longer be tolerated.