In a coordinated effort to combat illegal peer-to-peer cryptocurrency trading, the UK's Financial Conduct Authority (FCA) has conducted a series of raids on eight locations in London. The operation, which was carried out in conjunction with His Majesty's Revenue & Customs (HMRC) and the South West Regional Organised Crime Unit (SWROCU), resulted in the issuance of cease-and-desist notices and the collection of evidence for ongoing criminal investigations.
The targeted sites were suspected of facilitating peer-to-peer crypto transactions without the necessary registration or anti-money laundering controls, in contravention of UK law. According to the FCA, no peer-to-peer crypto traders or platforms are currently registered in the UK, and those operating without registration are doing so illegally, thereby posing a significant financial crime risk.
The FCA's executive director of enforcement and market oversight, Steve Smart, emphasized that unregistered traders are operating outside the law and pose a threat to the financial system. Law enforcement agencies view the operation as part of a broader effort to disrupt the flow of illicit funds, with unregistered traders potentially enabling criminals to launder and spend illegal proceeds. The crackdown marks an escalation of the FCA's enforcement actions, which have previously targeted operators of illegal crypto ATMs and unregistered crypto exchanges.
The move also comes as the UK prepares to introduce a more comprehensive regulatory framework for crypto by October 2027, with a licensing window set to open in September 2026. The FCA has urged consumers to verify the registration status of firms using its online register and warned that dealing with unregistered traders can expose them to significant risks, including the potential for transactions involving stolen funds.