In a coordinated effort, the UK's Financial Conduct Authority (FCA), along with HM Revenue & Customs and the South West Regional Organised Crime Unit, has conducted a series of raids on eight locations in London suspected of facilitating unlicensed peer-to-peer cryptocurrency trading. The sites, which allowed individuals to buy and sell cryptocurrencies directly with one another, were found to be operating without the required registration or anti-money laundering controls, contravening UK law. As a result, cease-and-desist notices were issued, and evidence was gathered to support ongoing criminal investigations. The FCA emphasized that unregistered peer-to-peer crypto traders operating in the UK are doing so illegally and pose a significant financial crime risk.
This operation is part of a broader effort to disrupt the movement of illicit funds, with law enforcement agencies working to cut off routes used by criminals to launder money. The action follows earlier enforcement measures, including the prosecution of operators of illegal crypto ATMs and the arrest of individuals linked to unregistered crypto exchanges. The UK is set to introduce a more comprehensive regulatory regime for cryptocurrencies by October 2027, with a licensing window expected to open in September 2026.
In the meantime, 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.