UK signals end of 'light-touch' era with multi-agency raid on peer-to-peer crypto hubs

The financial watchdog, which said the crackdown was a joint effort with HM Revenue & Customs (HMRC) and London’s Metropolitan Police, said it issued cease-and-desist letters at the three premises, requiring traders to stop participating in illegal crypto businesses. Peer-to-peer trading occurs when individuals buy and sell crypto directly with each other, an activity that needs to be legally registered in the U.K.

“There are currently no FCA-registered peer-to-peer crypto businesses operating in the U.K.,” the FCA said. “By operating outside the FCA’s registration regime, they avoid controls designed to detect and prevent money laundering,” the agency said.

The action signals that the era of “light-touch” crypto regulation in the U.K. is ending, said Caroline Black, a consultant at Gherson Solicitors LLP.