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 crypto trading platforms. The operation resulted in the issuance of cease-and-desist notices and the collection of evidence for ongoing criminal investigations. The targeted sites were suspected of facilitating direct crypto transactions between individuals without adhering to mandatory registration requirements or implementing anti-money laundering controls. Under UK law, crypto exchange providers must register with the FCA, and currently, there are no registered peer-to-peer crypto traders or platforms in the country.
According to the FCA's executive director of enforcement and market oversight, Steve Smart, unregistered peer-to-peer crypto traders operating in the UK are acting illegally and pose a significant financial crime risk. The operation is part of broader efforts to disrupt the flow of illicit funds, as unregistered traders can enable criminals to launder and spend illegal money.
This crackdown follows previous enforcement actions, including the prosecution of operators of illegal crypto ATMs and the arrest of individuals linked to an unregistered crypto exchange. The UK is set to introduce a more comprehensive regulatory framework for crypto by October 2027, with a licensing window expected to open in September 2026. The FCA has urged consumers to verify the registration status of firms using its online register and warned that dealing with unregistered P2P traders can result in a lack of access to the Financial Ombudsman Service or compensation schemes, as well as increased risks of transactions involving stolen funds.