In a joint effort, the UK's Financial Conduct Authority (FCA), His Majesty's Revenue & Customs (HMRC), and the South West Regional Organised Crime Unit (SWROCU) have conducted a coordinated raid on eight locations in London, targeting unlicensed peer-to-peer crypto trading hubs. The operation resulted in the issuance of cease-and-desist notices and the collection of evidence for ongoing criminal investigations.
The FCA stated that these sites were suspected of facilitating direct crypto transactions between individuals without adhering to mandatory registration requirements or implementing anti-money laundering controls. Under UK law, crypto exchange providers must register with the FCA, and currently, there are no registered peer-to-peer crypto traders or platforms in the country.
The FCA's executive director of enforcement and market oversight, Steve Smart, emphasized that unregistered peer-to-peer crypto traders operating in the UK are acting illegally and pose a significant financial crime risk. Law enforcement agencies view this operation as part of broader efforts to disrupt channels used for moving illicit funds. According to DI Ross Flay of SWROCU, unregistered traders can enable criminals to launder and spend illegal money.
This action follows previous enforcement measures, including the prosecution of operators of illegal crypto ATMs and the arrest of individuals linked to an unregistered crypto exchange in 2024. Last year, the FCA also took action against an offshore platform for unlawful financial promotions and expanded its oversight of social media figures promoting high-risk crypto products.
As the UK prepares to introduce a comprehensive regulatory regime for crypto by October 2027, with a licensing window expected to open in September 2026, the current framework focuses primarily on anti-money laundering compliance and financial promotions. The FCA advises consumers to verify a firm's registration using its online register and warns 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.