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
FCA Swoops on Suspected Illegal Peer-to-Peer Crypto Traders in London
FCA's First Major Operation Against Illegal Crypto Trading
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.
Details of the Operation
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 and Ongoing Investigations
"Evidence obtained during the on-site inspections is supporting a number of ongoing criminal investigations," the FCA said in a statement.
Regulatory Context and Risks
Preventing Criminal Activity
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.
Crypto Assets: A High-Risk Investment
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.
Industry Reaction
Legal Perspective
"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.
Future Outlook
"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."
(Reporting by Muvija M and Kirstin Ridley; editing by Sarah Young and Chizu Nomiyama )
