In a significant move, the UK's Financial Conduct Authority (FCA) has conducted a coordinated raid on eight unlicensed peer-to-peer crypto trading platforms across London, in partnership with HM Revenue & Customs and the South West Regional Organised Crime Unit. The operation resulted in the issuance of cease-and-desist notices and the collection of evidence, which will be used in ongoing criminal investigations. The targeted sites were suspected of facilitating peer-to-peer crypto trading without the necessary registration or anti-money laundering controls, posing a risk of financial crime. Under UK law, crypto exchange providers are required to register with the FCA, and currently, there are no registered peer-to-peer crypto traders or platforms in the country.
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 doing so illegally and pose a financial crime risk. The operation is part of a broader effort to disrupt the movement of illicit funds.
The FCA has previously taken enforcement action against operators of illegal crypto ATMs and worked with police to arrest individuals linked to an unregistered crypto exchange. Last year, it also took action against an offshore platform for unlawful financial promotions and expanded its oversight of social media figures promoting high-risk crypto products. As the UK prepares to introduce a new regulatory regime for crypto by October 2027, 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.