In a joint operation involving the Financial Conduct Authority (FCA), His Majesty's Revenue & Customs (HMRC), and the South West Regional Organised Crime Unit (SWROCU), authorities have raided eight locations in London suspected of facilitating unlicensed peer-to-peer crypto trading. The sites were issued cease-and-desist notices, and evidence gathered during the operation is being used in ongoing criminal investigations. The FCA has stated that these sites were operating without the necessary registration or anti-money laundering controls, which is a requirement under UK law for all crypto exchange providers.
Currently, there are no registered peer-to-peer crypto traders or platforms in the UK. According to Steve Smart, the FCA's executive director of enforcement and market oversight, unregistered peer-to-peer 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 movement of illicit funds, with unregistered traders potentially enabling criminals to launder money.
The FCA has previously taken enforcement action against operators of illegal crypto ATMs and worked with police to arrest individuals linked to unregistered crypto exchanges. Last year, the FCA also took action against an offshore platform 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 FCA is urging consumers to verify the registration status of firms using its online register and warning that dealing with unregistered P2P traders can leave users without access to the Financial Ombudsman Service or compensation schemes and at risk of transactions involving stolen funds.