UK targets illegal crypto trading in London crackdown

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.

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 obtained during the on-site inspections is supporting a number of ongoing criminal investigations," the FCA said in a statement.

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.

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.

"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.

"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."