Britain’s financial market regulator said on Wednesday it had carried out an operation targeting eight locations in London suspected of hosting illegal peer-to-peer cryptocurrency exchanges.
- +UK cracks down on illegal crypto trading sites
Peer-to-peer trading allows people to buy and sell crypto directly with one another, bypassing centralised platforms that are subject to regulations such as anti-money laundering rules.
Peer-to-peer trading allows people to buy and sell crypto directly with one another, bypassing centralised platforms that are subject to regulations such as anti-money laundering rules.
Payments can be made by bank transfer or via gift cards, and participants can coordinate online through dedicated websites or in person, according to data analytics firm Chainalysis.
The Financial Conduct Authority (FCA) said it had issued cease and desist letters to eight London addresses, “ordering traders to stop illegal activity immediately.”
“Evidence obtained during the on-site inspections is supporting a number of ongoing criminal investigations,” the regulator added.
The FCA operation is aimed at preventing such traders from providing a route for criminals to move, disguise and spend illegal money.
Peer-to-peer exchanges are particularly widespread in regions lacking a robust traditional banking system, such as parts of South America and Africa, or in areas affected by unrest, Chainalysis said.
Another analytics firm, TRM Labs, highlighted the role of these traders in Venezuela, who convert the local currency, the bolivar, into stablecoins.
