In a joint operation with HM Revenue & Customs and the South West Regional Organised Crime Unit, the UK's Financial Conduct Authority (FCA) has conducted a coordinated sweep of eight locations in London, targeting unlicensed peer-to-peer crypto trading platforms. The FCA issued cease-and-desist notices and gathered evidence for ongoing criminal investigations. The targeted sites were suspected of facilitating peer-to-peer crypto transactions 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 Steve Smart, the FCA's executive director of enforcement and market oversight, unregistered peer-to-peer crypto traders operating in the UK are acting illegally and pose a financial crime risk. The operation aims to disrupt routes used to move illicit funds, with law enforcement agencies warning that unregistered traders can enable criminals to launder money. This enforcement action builds on previous efforts, including the prosecution of operators of illegal crypto ATMs and the arrest of individuals linked to an unregistered crypto exchange. The FCA has also taken action against offshore platforms for unlawful financial promotions and expanded oversight of social media figures promoting high-risk crypto products.
As the UK prepares to introduce a broader regulatory regime for crypto by October 2027, the FCA is urging consumers to verify whether firms are registered using its online register and warning that users dealing with unregistered P2P traders may face risks, including the lack of access to the Financial Ombudsman Service or compensation schemes, and the potential involvement of stolen funds in transactions.