In a coordinated effort, the UK's Financial Conduct Authority, along with HM Revenue & Customs and the South West Regional Organised Crime Unit, has conducted a series of raids on eight sites in London suspected of engaging in unauthorized peer-to-peer crypto trading. The sites, which allowed individuals to buy and sell cryptocurrencies directly, were found to be operating without the required registration or anti-money laundering controls, thereby posing a significant risk of financial crime. According to the FCA, all crypto exchange providers must register with the authority, and currently, there are no registered peer-to-peer crypto traders or platforms in the UK.
The operation is part of a broader effort to disrupt the movement of illicit funds, with law enforcement agencies emphasizing that unregistered traders can facilitate the laundering of 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. As the UK prepares to introduce a more comprehensive regulatory framework for cryptocurrencies by October 2027, the FCA is urging consumers to verify the registration status of firms using its online register and warning of the potential risks associated with dealing with unregistered traders, including the lack of access to the Financial Ombudsman Service or compensation schemes.