UK watchdog targets three London sites suspected of illegal crypto trading

Britain's Financial Conduct Authority said on Thursday it had taken action against illegal peer-to-peer cryptocurrency trading in London, targeting three premises suspected of operating unregistered crypto businesses.

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. The finance regulator did not identify the premises.

"Anyone running an unregistered peer-to-peer crypto business should assume we are looking at them," said Steve Smart, executive director of enforcement and market oversight at the FCA.

Authorities say unregistered peer-to-peer crypto traders can be used to move and launder illicit funds. There are currently no registered peer-to-peer crypto trading businesses operating in Britain, according to the FCA.

The operation, conducted earlier in September, follows a similar crackdown in April, when the regulator targeted eight London addresses suspected of illegal peer-to-peer crypto trading.

Crypto assets are considered high-risk investments in Britain and remain largely unregulated, except for anti-money laundering requirements and rules governing financial promotions.

(Reporting by Sam Tabahriti; editing by William James and Sarah Young)