The Financial Conduct Authority has carried out a major enforcement operation targeting illegal crypto trading activities across London.
The regulator said on Wednesday that it conducted operations at eight locations suspected of hosting unlawful peer-to-peer cryptocurrency exchange services.
According to the authority, cease-and-desist letters were issued to the eight addresses, ordering traders to immediately halt illegal activities linked to cryptocurrency transactions.
The FCA noted that evidence gathered during on-site inspections is supporting several ongoing criminal investigations.
Peer-to-peer cryptocurrency trading allows individuals to buy and sell digital assets directly with one another, bypassing centralised platforms that are typically subject to regulatory checks, including anti-money laundering requirements.
Data analytics firm Chainalysis explained that payments in such transactions can be made through bank transfers or gift cards, with participants coordinating exchanges online or through in-person meetings.
The FCA said the crackdown is part of efforts to prevent illegal traders from creating channels that enable criminals to move, conceal, and spend illicit funds.
Another analytics firm, TRM Labs, highlighted that peer-to-peer cryptocurrency exchanges are particularly common in regions with limited access to traditional banking systems, including parts of South America and Africa.
TRM Labs cited examples such as Venezuela, where traders use peer-to-peer networks to convert the local currency into stablecoins amid economic instability.
