UK Authorities Shut Down Eight Unlicensed Peer-to-Peer Cryptocurrency Trading Platforms

In a major operation, the UK's Financial Conduct Authority, in conjunction with HM Revenue & Customs and the South West Regional Organised Crime Unit, has conducted a series of raids on eight locations in London, targeting unlicensed peer-to-peer cryptocurrency trading platforms. The sites in question were accused of facilitating direct cryptocurrency transactions between individuals without adhering to the required registration and anti-money laundering regulations. According to the FCA, these unregistered platforms pose a significant risk of financial crime. The regulatory body has issued cease-and-desist orders and gathered evidence for potential criminal investigations.

Under current UK law, cryptocurrency exchange providers are mandated to register with the FCA, and as of now, there are no registered peer-to-peer cryptocurrency traders or platforms operating in the country. The FCA's executive director of enforcement and market oversight, Steve Smart, emphasized that unregistered peer-to-peer cryptocurrency traders are operating illegally and pose a significant financial crime risk. Law enforcement views this operation as part of a broader effort to disrupt channels used for moving illicit funds.

The action is an extension of previous enforcement measures, including the prosecution of operators of illegal cryptocurrency ATMs and the arrest of individuals linked to unregistered cryptocurrency exchanges. Last year, the FCA also took action against an offshore platform for unlawful financial promotions and expanded its oversight of social media figures promoting high-risk cryptocurrency products. As the UK prepares to implement a more comprehensive regulatory framework for cryptocurrencies 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 traders, including the lack of access to the Financial Ombudsman Service or compensation schemes.