In a coordinated effort, the UK's Financial Conduct Authority (FCA), in collaboration with HM Revenue & Customs and the South West Regional Organised Crime Unit, has launched a series of raids on eight locations in London suspected of hosting illegal peer-to-peer cryptocurrency trading operations. The sites in question have been accused of enabling individuals to buy and sell cryptocurrencies directly without adhering to the mandatory registration requirements or implementing adequate anti-money laundering controls.

According to the FCA, these platforms were issued cease-and-desist orders, and evidence gathered during the raids is being utilized in ongoing criminal investigations. The FCA emphasized that under UK law, all crypto exchange providers must register with the authority, yet currently, there are no registered peer-to-peer crypto traders or platforms operating within the country. Executive Director of Enforcement and Market Oversight, Steve Smart, highlighted that unregistered peer-to-peer crypto traders operating in the UK are in violation of the law and pose a significant risk of financial crime. Law enforcement views this operation as a crucial step in disrupting the channels used to launder illicit funds, with DI Ross Flay of SWROCU noting that unregistered traders can inadvertently facilitate the movement, concealment, and expenditure of illegal funds.

This enforcement action is part of the FCA's broader efforts to regulate the crypto sector, including past prosecutions of operators of illegal crypto ATMs and collaboration with police to apprehend individuals linked to unregistered crypto exchanges. The FCA has also taken action against offshore platforms 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 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 the lack of access to the Financial Ombudsman Service or compensation schemes and the potential involvement of stolen funds in transactions.