In a coordinated effort, the UK's Financial Conduct Authority (FCA), in collaboration with HM Revenue & Customs (HMRC) and the South West Regional Organised Crime Unit (SWROCU), has conducted a series of raids on eight locations in London suspected of hosting unlicensed peer-to-peer (P2P) cryptocurrency trading operations. The sites were served with cease-and-desist orders, and evidence collected is being utilized in multiple ongoing criminal investigations, as stated by the FCA. The primary concern is that these platforms facilitate direct cryptocurrency transactions between individuals without adhering to required registrations or implementing anti-money laundering controls, which is in contravention of UK law. The FCA emphasized that any entity operating as a cryptocurrency exchange provider must be registered with the authority, and currently, there are no registered P2P crypto traders or platforms in the UK.

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 risk of financial crime." Law enforcement views this operation as part of broader efforts to disrupt channels used for the movement of illicit funds, with DI Ross Flay of SWROCU noting that unregistered traders can inadvertently enable criminals to launder money. This action follows previous enforcement measures, including the prosecution of operators of illegal cryptocurrency ATMs and collaboration with police to apprehend individuals associated with unregistered cryptocurrency exchanges. The FCA also took action against offshore platforms for unlawful financial promotions and expanded its oversight of social media influencers promoting high-risk cryptocurrency products.

As the UK prepares to introduce a more comprehensive regulatory framework for cryptocurrencies by October 2027, with a licensing window set to open in September 2026, the current focus remains on compliance with anti-money laundering regulations and financial promotions. The FCA advises consumers to verify the registration status of firms 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, alongside potential risks associated with transactions involving stolen funds.