In a joint operation with HMRC and the South West Regional Organised Crime Unit, the UK's Financial Conduct Authority has conducted a coordinated sweep of illegal peer-to-peer crypto trading hubs across London, issuing cease-and-desist notices and gathering evidence for multiple criminal investigations. The targeted sites were suspected of facilitating direct crypto transactions between individuals without necessary registration or anti-money laundering measures, contravening UK law that requires crypto exchange providers to register with the FCA. Currently, there are no registered peer-to-peer crypto traders or platforms in the UK, and unregistered operators are deemed to be acting illegally, posing a financial crime risk.
The FCA's executive director of enforcement and market oversight emphasized that such unregistered traders enable criminals to launder illicit funds. This operation is part of broader efforts to disrupt channels used for moving illegal funds and builds upon previous enforcement actions, including prosecutions of illegal crypto ATM operators and the arrest of individuals linked to unregistered crypto exchanges.
As the UK prepares to introduce a more comprehensive regulatory framework for crypto by October 2027, the FCA is urging consumers to verify the registration status of firms using its online register, warning that dealing with unregistered P2P traders can leave users without access to the Financial Ombudsman Service or compensation schemes and expose them to risks associated with stolen funds.