UK Authorities Shut Down Eight Unlicensed P2P Trading Platforms in London

In a coordinated effort to combat illegal peer-to-peer cryptocurrency trading, the UK's Financial Conduct Authority, alongside HM Revenue & Customs and the South West Regional Organised Crime Unit, has conducted a series of raids on eight locations in London. The operation resulted in the issuance of cease-and-desist notices at each site, with evidence gathered to support multiple ongoing criminal investigations. The targeted sites were suspected of facilitating direct cryptocurrency transactions between individuals without the requisite registration or adherence to anti-money laundering regulations. Under UK law, crypto exchange providers are mandated to register with the FCA, yet currently, no peer-to-peer crypto traders or platforms are registered.

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 in violation of the law and pose a significant risk of financial crime. Law enforcement views this operation as a crucial step in disrupting the flow of illicit funds, with unregistered traders potentially enabling criminals to launder and spend illegal proceeds. 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. The FCA has also taken action against offshore platforms for unlawful financial promotions and expanded its oversight of social media figures promoting high-risk crypto products.

As the UK prepares to implement a comprehensive regulatory framework for crypto by October 2027, with a licensing window set to open in September 2026, the current focus remains on anti-money laundering compliance 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, and potentially involves the risk of stolen funds.