In a landmark operation, the UK's Financial Conduct Authority (FCA), 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 unlicensed peer-to-peer cryptocurrency trading platforms. The sites in question were allegedly facilitating direct crypto transactions between individuals without adhering to the necessary regulatory requirements, including registration with the FCA and the implementation of anti-money laundering controls. According to the FCA, these platforms were operating illegally, as there are currently no registered peer-to-peer crypto traders or platforms in the UK.
The regulator emphasized that unregistered operators pose a significant financial crime risk. The action is part of broader efforts to disrupt illicit financial flows.
Law enforcement officials highlighted that unregistered traders can inadvertently enable criminals to launder money. This operation builds upon previous enforcement actions, 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 influencers promoting high-risk crypto products. As the UK prepares to introduce a more 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.
It warned that dealing with unregistered traders can leave users without access to the Financial Ombudsman Service or compensation schemes, exposing them to potential risks, including transactions involving stolen funds.