In a major enforcement effort, the UK's Financial Conduct Authority, in collaboration 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 hosting unauthorized peer-to-peer cryptocurrency trading activities. The operation resulted in the issuance of cease-and-desist orders and the collection of evidence for ongoing criminal investigations. The targeted sites were allegedly facilitating direct crypto transactions between individuals without adhering to mandatory registration requirements or implementing anti-money laundering controls, a violation of UK law. According to the FCA, no peer-to-peer crypto trading platforms are currently registered in the UK, emphasizing that unregistered operators are acting illegally and contribute to financial crime risks.
The action is part of broader efforts to combat illicit fund movements and follows previous enforcement actions against operators of illegal crypto ATMs and unregistered crypto exchanges. As the UK prepares to introduce a comprehensive crypto regulatory framework by October 2027, the FCA is urging consumers to verify the registration status of firms using its online register, warning of potential risks and lack of protection when dealing with unregistered entities.