Daily · FCA Crypto Enforcement and SEC Tokenization · September 17, 2026

Key points

FCA Investigates Euro Exchange Securities

The Financial Conduct Authority (FCA) has opened an investigation into Euro Exchange Securities UK Ltd (EES) regarding potential offences under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs). The investigation covers the period between 1 February 2020 and 4 June 2026. The FCA stated that EES may have failed to take appropriate steps to identify and assess money laundering risks, including in relation to customers, countries, services, transactions, and delivery channels.

The regulator noted that EES may also have failed to establish and maintain policies, controls, and procedures to mitigate these risks. Specific areas of concern include customer due diligence, ongoing monitoring controls, internal governance, resourcing, and record-keeping mechanisms. The FCA emphasized that it has not yet reached any conclusions on whether EES breached relevant requirements.

This investigation follows the FCA's confirmation on 4 June 2026 that it had required EES to cease carrying on regulated electronic money or payment services and had successfully applied for interim managers. On 11 June 2026, the High Court appointed special administrators, Duncan Perring and James Bennett of Teneo Financial Advisory Limited, under the Payment and Electronic Money Institution Insolvency Regulations 2021. The administrators have taken control of the firm, secured significant material, and frozen funds.

SEC Grants Relief for Tokenized Securities

The US Securities and Exchange Commission (SEC) issued an order granting temporary, conditional exemptive relief to entities designated as Tokenized Securities Venues (TSVs). This relief exempts TSVs from the definition of "exchange" under the Securities Exchange Act of 1934. The order is designed to facilitate the trading of tokenized National Market System (NMS) stock.

Alongside the order, the SEC issued a request for comment on the matter. This move creates a conditional regulatory pathway in the US for venues trading tokenized securities, which may influence decisions regarding tokenization, custody, and market structure for firms operating in or targeting the US market.

UK SME Finance and Crypto Enforcement

The FCA set out practical steps to support small and medium-sized enterprises (SMEs) in accessing finance, following a review that found no evidence its regulation is a major barrier. The review highlighted that challenges are most acute for microbusinesses, which constitute 95.5% of all SMEs and are less likely to use external finance. The FCA is focusing on Consumer Credit Act reform, prioritizing SME lending as a key use case for open finance, and monitoring industry work on digital verification to reduce duplication in customer checks.

In a separate enforcement action, the FCA, HM Revenue & Customs (HMRC), and the Metropolitan Police Service issued cease and desist letters at 3 London premises suspected of illegal peer-to-peer (P2P) crypto trading. The operation required traders to stop any suspected illegal crypto businesses. The FCA noted that there are currently no registered P2P crypto businesses in the UK, and this action follows similar measures taken in April.

US Market Structure and Clearing Updates

The SEC approved the third amendment to the National Market System Plan Regarding Consolidated Equity Market Data, which revises the revenue allocation formula. Additionally, the SEC approved a proposed rule change relating to the LCH SA CDSClear Trade Registration Fund and granted LCH SA conditional exemptive relief under Section 36 of the Securities Exchange Act of 1934 regarding rule filing requirements.

NYSE Arca, Inc. filed a proposed rule change to amend its Equities Fees and Charges, while NYSE American LLC filed a notice designating a longer period for Commission action on amendments to Sections 1003 and 1009 of the NYSE American Company Guide. NYSE American also filed a proposed change to Rule 7.18E regarding initial listing regulatory halts. 24X National Exchange LLC filed a proposed rule change to amend Rule 8.1(d) to clarify disciplinary functions by FINRA's Office of Disciplinary Affairs.

Our read

The FCA's investigation into Euro Exchange Securities underscores the heightened scrutiny on financial crime controls within payment and electronic money institutions, particularly those already under administrative pressure. Simultaneously, the SEC's conditional exemptive relief for Tokenized Securities Venues signals a willingness to create regulatory space for tokenized NMS stock, potentially altering custody and market-structure strategies for global firms. In the UK, the FCA's dual focus on easing SME finance friction through open finance and cracking down on unregistered P2P crypto trading illustrates a balanced approach to fostering innovation while enforcing strict registration requirements.

This digest was produced automatically by a large-language-model system from the regulator publications and official sources listed below; it is AI-generated content and may contain inaccuracies. It is not legal advice — verify wording and deadlines against the original documents.

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