In a coordinated effort to combat illicit financial activities, the UK's Financial Conduct Authority (FCA) has conducted a series of raids on eight unlicensed peer-to-peer crypto trading platforms in London. The operation, carried out in conjunction with His Majesty's Revenue & Customs (HMRC) and the South West Regional Organised Crime Unit (SWROCU), 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 peer-to-peer crypto transactions without the necessary registration or anti-money laundering measures, posing a significant risk of financial crime. Under UK law, crypto exchange providers are required to 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 peer-to-peer crypto traders operating in the UK are doing so illegally and pose a financial crime risk. The operation is part of a broader effort to disrupt the flow of illicit funds, with law enforcement agencies recognizing that unregistered traders can enable criminals to launder and spend illegal money. This crackdown builds on previous enforcement actions, 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 and 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 of the risks associated with dealing with unregistered P2P traders, including the lack of access to the Financial Ombudsman Service or compensation schemes.