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 unlicensed peer-to-peer crypto trading hubs in London. 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 the required registration and anti-money laundering regulations. 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 Steve Smart, the FCA's executive director of enforcement and market oversight, unregistered P2P crypto traders operating in the UK are doing so illegally and pose a significant financial crime risk. Law enforcement agencies view this operation as part of a broader effort to disrupt the flow of illicit funds. The South West Regional Organised Crime Unit's DI Ross Flay noted that unregistered traders can enable criminals to launder and spend illegal money. This enforcement action builds upon previous efforts, including the prosecution of operators of illegal crypto ATMs and the arrest of 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 more comprehensive regulatory regime for crypto by October 2027, the current framework focuses primarily on anti-money laundering compliance and financial promotions. The FCA advises consumers to verify a firm's registration using its online register and warns that dealing with unregistered P2P traders may result in a lack of access to the Financial Ombudsman Service or compensation schemes, and may also involve risks associated with stolen funds.