In a coordinated effort, the UK's Financial Conduct Authority (FCA), along with His Majesty's Revenue & Customs (HMRC) and the South West Regional Organised Crime Unit (SWROCU), has conducted a series of raids on eight locations in London, targeting unlicensed peer-to-peer crypto trading platforms. The operation resulted in the issuance of cease-and-desist notices and the collection of evidence for ongoing criminal investigations. The FCA has stated that these platforms were suspected of facilitating peer-to-peer crypto trading without the mandatory registration or anti-money laundering controls, which is in contravention of UK law.
Currently, there are no registered peer-to-peer crypto traders or platforms operating in the UK, and the FCA has emphasized that unregistered traders pose a significant financial crime risk. According to Steve Smart, the FCA's executive director of enforcement and market oversight, 'Unregistered peer-to-peer crypto traders operating in the UK are doing so illegally and pose a financial crime risk.' Law enforcement agencies view this operation as part of a broader effort to disrupt the movement of illicit funds. Detective Inspector Ross Flay of SWROCU noted that unregistered traders can enable criminals to 'move, disguise and spend illegal money.' This enforcement action builds upon previous steps taken by the FCA, including the prosecution of operators of illegal crypto ATMs and collaboration with police to arrest individuals linked to an unregistered crypto exchange in 2024. The FCA also took action against the offshore platform HTX for unlawful financial promotions and expanded its oversight of social media figures promoting high-risk crypto products last year.
As the UK prepares to introduce a more comprehensive regulatory regime for crypto by October 2027, with a licensing window expected to open in September 2026, the current framework primarily focuses on anti-money laundering compliance and financial promotions. The FCA has urged consumers to verify the registration status of firms using its online register and warned that dealing with unregistered P2P traders may result in a lack of access to the Financial Ombudsman Service or compensation schemes, and may also involve risks associated with stolen funds.