In a coordinated effort, the UK's Financial Conduct Authority (FCA), His Majesty's Revenue & Customs (HMRC), and the South West Regional Organised Crime Unit (SWROCU) have launched a crackdown on unlicensed peer-to-peer cryptocurrency trading platforms in London. The operation resulted in the issuance of cease-and-desist notices at eight locations, with evidence gathered to support ongoing criminal investigations. The targeted sites were allegedly facilitating peer-to-peer crypto trading without proper registration or anti-money laundering controls, which is a requirement under UK law for crypto exchange providers. Currently, no peer-to-peer crypto traders or platforms are registered in the UK.

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 acting illegally and pose a significant financial crime risk. Law enforcement views this operation as part of broader efforts to disrupt the movement of illicit funds. Detective Inspector Ross Flay of SWROCU noted that unregistered traders can enable criminals to launder and spend illegal proceeds. This enforcement action builds upon previous efforts, 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 the offshore platform HTX for unlawful financial promotions and expanded its oversight of social media figures promoting high-risk crypto products. As the UK prepares to implement a more comprehensive regulatory regime for crypto by October 2027, with a licensing window set to open in September 2026, the current framework primarily focuses on anti-money laundering compliance and financial promotions. The FCA advises consumers to verify the registration status of firms 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.