In a major coordinated effort, the UK's Financial Conduct Authority, in collaboration with HM Revenue & Customs and the South West Regional Organised Crime Unit, has raided eight locations in London suspected of facilitating unregistered peer-to-peer cryptocurrency trading. The operation resulted in the issuance of cease-and-desist orders and the collection of evidence for ongoing criminal investigations.
According to the FCA, these sites were allegedly operating without the mandatory registration or anti-money laundering controls required by UK law, thereby posing a significant risk of financial crime. The FCA emphasized that there are currently no registered peer-to-peer cryptocurrency traders or platforms in the UK, and any such operations are considered illegal.
Executive Director of Enforcement and Market Oversight, Steve Smart, stated that unregistered traders operating in the UK are not only illegal but also pose a financial crime risk. The operation is part of broader efforts to disrupt the flow of illicit funds, with law enforcement agencies highlighting the role of unregistered traders in enabling the movement and concealment of illegal money. This enforcement action builds upon previous steps taken by the FCA, including the prosecution of operators of illegal cryptocurrency ATMs and the arrest of individuals linked to unregistered cryptocurrency exchanges.
The move comes as the UK prepares to introduce a more comprehensive regulatory framework for cryptocurrency 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 of the risks associated with dealing with unregistered traders, including the lack of access to the Financial Ombudsman Service or compensation schemes and the potential involvement of stolen funds in transactions.