Read the latest update on the FCA targeting three London premises in a crackdown on illegal peer-to-peer crypto trading.
Frequently Asked Questions
Here is a list of frequently asked questions about the FCAs crackdown on illegal peertopeer crypto trading in London
The Basics
What is the FCA
The Financial Conduct Authority It is the UK regulator that watches over financial markets and firms to ensure they are fair and honest
What is peertopeer crypto trading
It is when two people trade crypto directly with each other usually through a platform like Binance P2P or LocalBitcoins without a bank or central exchange in the middle
What exactly is the FCA doing in London
The FCA is visiting physical locations in Londonspecifically three spots known for crypto activityto stop illegal P2P trading They are checking if businesses are operating without proper permission
Why is the FCA targeting these three specific London locations
These locations were identified as hotspots where illegal unregulated crypto trading is likely happening The FCA acts on intelligence about where these activities cluster
Is P2P crypto trading illegal in the UK
Not always It is illegal if the platform or the person running the service does not have FCA authorization to operate a crypto business Personal casual trading between two individuals is generally allowed but running a business without registration is not
Rules and Regulations
Do I need a license to trade crypto P2P in the UK
If you are just buying or selling your own crypto occasionally no If you are running a business that facilitates trades for others or trades as a profession you likely need to be registered with the FCA
What is the Travel Rule and how does it affect P2P
The Travel Rule requires crypto businesses to share sender and receiver information for transfers For P2P this means if you use a platform that platform must collect and verify your identity and the identity of the person you are trading with
What happens if I get caught trading illegally
You could face fines your assets could be frozen and in serious cases you could face criminal charges The FCA can also shut down the platform you are using
Are crypto ATMs included in this crackdown
Yes Crypto ATMs are treated as a form of crypto trading The FCA has already warned that all crypto ATMs in the UK are illegal unless they are registered and none currently are
Practical Concerns