In a major crackdown, the UK's Financial Conduct Authority (FCA), in collaboration with HM Revenue & Customs and the South West Regional Organised Crime Unit, has launched a coordinated raid on eight unlicensed peer-to-peer cryptocurrency trading platforms in London. The authorities issued cease-and-desist notices and gathered evidence, which will be used in ongoing criminal investigations. The FCA stated that these platforms were operating without the required registration or anti-money laundering controls, posing a significant risk of financial crime. Under UK law, all crypto exchange providers must 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 significant financial crime risk. The operation is part of a broader effort to disrupt the movement of illicit funds, with law enforcement agencies emphasizing that unregistered traders can enable criminals to launder and spend illegal money. This action builds on previous enforcement measures, 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 framework for crypto by October 2027, the FCA is urging consumers to verify the registration status of firms using its online register and warning them of the risks associated with dealing with unregistered P2P traders, including the lack of access to the Financial Ombudsman Service or compensation schemes.