The United Kingdom has started a new enforcement action against illegal crypto trading. The Financial Conduct Authority (FCA) carried out its first coordinated operation that targeted unregistered peer-to-peer traders. This action took place across several locations in London and it involved a number of law enforcement partners.
During the raid the FCA worked alongside HM Revenue and Customs and the South West Regional Organised Crime Unit and they successfully inspected eight suspected sites. Officials issued a cease-and-desist orders, and demanded that traders stop operations immediately, while they collected evidence for ongoing criminal investigations.
Source: FCA.ORG.UK
Typically, peer-to-peer crypto allows individuals to buy and sell digital assets without having to use centralized exchanges. In the UK, this type of activity requires registration, but regulators say no traders are currently approved to carry such activities.
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Authorities warned that unregistered digital assets trading poses serious financial crime risks. These platforms can be used to move and hide illegal money, making them attractive to criminal networks. The FCA has taken similar actions before. It has shut down illegal digital assets ATMs and worked with the Metropolitan Police Service to arrest suspects linked to unlawful crypto exchanges.
The UK government has flagged crypto as one of the growing tool for money laundering and illegal financing.
According to the regulators this trend is increasing as more people adopt digital assets. Officials are urging consumers to stay cautious, as well investors are advised to deal only with platforms registered under the FCA to understand that digital asset remains a high-risk investment.
The FCA says it will continue work with both local and international partners to help strengthen its enforcement. The goal is to protect consumers and reduce the use of crypto in criminal activity.
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