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."

(Reporting by Muvija M and Kirstin Ridley; editing by Sarah Young and Chizu ‌Nomiyama )

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