In a major operation, the UK's Financial Conduct Authority (FCA), in collaboration with HM Revenue & Customs and the South West Regional Organised Crime Unit, has conducted a series of raids on eight sites in London suspected of operating as unlicensed peer-to-peer crypto trading hubs. The FCA issued cease-and-desist orders at each location and gathered evidence for ongoing criminal investigations.
The targeted sites were allegedly facilitating direct crypto transactions between individuals without the necessary registration or anti-money laundering controls, which is a requirement under UK law for crypto exchange providers. Currently, there are no registered peer-to-peer crypto traders or platforms in the UK. According to Steve Smart, the FCA's executive director of enforcement and market oversight, unregistered peer-to-peer crypto traders in the UK are operating illegally and pose a significant risk of financial crime. Law enforcement views this operation as part of a broader effort to disrupt channels used for moving illicit funds, with unregistered traders potentially enabling criminals to launder money.
The action follows previous enforcement measures, including prosecutions of operators of illegal crypto ATMs and the arrest of individuals linked to an unregistered crypto exchange. Last year, the FCA also took action against an offshore platform for unlawful financial promotions and expanded its oversight of social media influencers promoting high-risk crypto products. As the UK prepares to introduce a comprehensive regulatory framework for crypto by October 2027, with a licensing window set to open in September 2026, the FCA is urging consumers to verify the registration status of firms using its online register and warning of the risks associated with dealing with unregistered P2P traders, including lack of access to the Financial Ombudsman Service or compensation schemes and potential involvement with stolen funds.