In a joint operation, the UK's Financial Conduct Authority (FCA), HM Revenue & Customs, and the South West Regional Organised Crime Unit (SWROCU) have conducted a series of raids on eight sites in London suspected of facilitating unauthorized peer-to-peer cryptocurrency trading. The sites were issued cease-and-desist notices, and evidence gathered will be used in ongoing criminal investigations.
The FCA stated that these platforms were operating without the required registration or anti-money laundering controls, which is mandatory for crypto exchange providers in the UK. Currently, there are no registered peer-to-peer crypto traders or platforms in the country. According to the FCA's executive director of enforcement and market oversight, Steve Smart, unregistered peer-to-peer crypto traders are operating illegally and pose a significant financial crime risk.
Law enforcement views this operation as part of a broader effort to disrupt channels used for illicit fund movements. The South West Regional Organised Crime Unit's DI Ross Flay noted that unregistered traders can inadvertently enable criminals to launder and spend illegal proceeds. This action follows previous enforcement measures, including the prosecution of operators of illegal crypto ATMs and collaboration with police to apprehend individuals linked to unregistered crypto exchanges.
The FCA also took action against an offshore platform for unlawful financial promotions and expanded its oversight of social media influencers promoting high-risk crypto products. As the UK prepares to introduce a comprehensive regulatory framework for crypto by October 2027, with a licensing window set to open in September 2026, 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 and potential involvement with stolen funds.