UK Authorities Shut Down Eight Unlicensed Peer-to-Peer Trading Platforms in London

In a coordinated effort, the UK's Financial Conduct Authority, along with HM Revenue & Customs and the South West Regional Organised Crime Unit, has conducted a series of raids on eight locations in London suspected of operating illegal peer-to-peer cryptocurrency trading platforms. The operation resulted in the issuance of cease-and-desist notices and the collection of evidence for ongoing criminal investigations. According to the FCA, these platforms were operating without the mandatory registration and anti-money laundering controls required by law, thereby posing a significant risk of facilitating financial crimes.

The regulator emphasized that all crypto exchange providers must register with the FCA, and currently, there are no registered peer-to-peer crypto traders or platforms in the UK. The FCA's executive director of enforcement and market oversight, Steve Smart, warned that unregistered peer-to-peer crypto traders are operating illegally and pose a significant financial crime risk. This operation is part of a broader effort by law enforcement to disrupt the channels used to launder illicit funds.

The South West Regional Organised Crime Unit's DI Ross Flay noted that unregistered traders can enable criminals to launder and spend illegal proceeds. This enforcement action builds upon previous steps taken by the FCA, including the prosecution of operators of illegal crypto ATMs and the arrest of individuals linked to unregistered crypto exchanges.

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 implement 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 traders, including the lack of access to the Financial Ombudsman Service or compensation schemes.