UK Authorities Shut Down Eight Unlicensed P2P Trading Platforms in London

In a coordinated effort, the UK's Financial Conduct Authority (FCA), 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 suspected of hosting illegal peer-to-peer cryptocurrency trading activities. The operation resulted in the issuance of cease-and-desist orders and the collection of evidence for ongoing criminal investigations. The FCA alleged that these platforms facilitated direct cryptocurrency transactions between individuals without adhering to required registration protocols or implementing anti-money laundering controls, which is a violation of UK law. As there are no registered peer-to-peer cryptocurrency traders or platforms in the UK, the FCA emphasized that unregistered operators are acting illegally and increasing the risk of financial crimes.

The executive director of enforcement and market oversight at the FCA, Steve Smart, stated that these unauthorized traders pose a significant risk to the financial system. Law enforcement views this operation as a crucial step in disrupting the flow of illicit funds, with DI Ross Flay of SWROCU noting that unregistered traders can enable the laundering of illegal money. This action follows previous enforcement measures, including the prosecution of operators of illegal cryptocurrency ATMs and the arrest of individuals associated with unregistered cryptocurrency exchanges. The FCA also took action against an offshore platform for unlawful financial promotions and expanded its oversight of social media influencers promoting high-risk cryptocurrency products.

As the UK prepares to introduce a comprehensive regulatory framework for cryptocurrencies by October 2027, with a licensing window set to open in September 2026, the FCA advised 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.