UK Authorities Shut Down Eight Unlicensed P2P Trading Platforms in London

In a coordinated effort, the UK's Financial Conduct Authority, in collaboration 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 operation resulted in the issuance of cease-and-desist orders and the collection of evidence for ongoing criminal investigations. The targeted sites were suspected of facilitating direct cryptocurrency transactions between individuals without obtaining the required registration or implementing adequate anti-money laundering controls, which is mandatory for crypto exchange providers in the UK. Currently, there are no registered peer-to-peer crypto traders or platforms operating 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 significant financial crime risk. Law enforcement views this 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. This crackdown follows previous enforcement actions, including the prosecution of operators of illegal crypto ATMs and collaboration with police to arrest 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 expected 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 lack of access to the Financial Ombudsman Service or compensation schemes and potential involvement in transactions with stolen funds.