UK Regulators Crack Down on Illegal Crypto Traders in London

The FCA raided three London sites over unregistered crypto trading, warning all such businesses in the UK are operating illegally.

UK authorities are hunting down illegal crypto traders — and they just hit three more locations in London.

On September 10, three government bodies teamed up for a joint operation:

The FCA (Financial Conduct Authority — the UK's financial watchdog that oversees banks, markets, and companies)
HMRC (HM Revenue & Customs — the UK's tax collection agency)
The Metropolitan Police (London's main police force)

All three raided premises suspected of running peer-to-peer (P2P) crypto trading — this means buying and selling cryptocurrency directly between individuals, without a big exchange in the middle — as a business without permission.

Why does this matter?

In the UK, anyone running a crypto trading business must register with the FCA. Registration forces companies to follow anti-money laundering rules (measures to stop criminals from hiding where dirty money comes from).

Here's the shocking part: The FCA says there are currently zero registered P2P crypto businesses in the entire UK. That means every single one is breaking the rules by definition. Enforcement is simply a matter of finding them.

Key facts:

Cease and desist letters (official orders to stop operating) were issued at all three sites
This was the second sweep — the first happened in April
Evidence from April is now fueling criminal investigations
The operation used 2017 money laundering laws, since crypto is still mostly unregulated in Britain

"Anyone running an unregistered peer-to-peer crypto business should assume we are looking at them," warned Steve Smart, the FCA's enforcement chief.

Authorities have already scored wins. One person, Olumide Osunkoya, got a four-year prison sentence for running an illegal crypto ATM network.

What's next?

Crypto rules in Britain are about to change. A brand-new regulatory system takes effect on October 25, 2027, and businesses can start applying for official permission from September 30.

Bottom line: UK regulators are getting serious about cleaning up the crypto space, and unregistered traders are firmly in their sights.

This is an AI-generated summary. Read the original article at: https://decrypt.co/378495/fca-targets-three-more-london-sites-over-unregistered-p2p-crypto-trading