In a major crackdown, the UK's Financial Conduct Authority (FCA) has launched a coordinated operation against eight unlicensed peer-to-peer crypto trading platforms in London. The action, carried out in collaboration with HM Revenue & Customs and the South West Regional Organised Crime Unit, resulted in the issuance of cease-and-desist notices and the collection of evidence for ongoing criminal investigations. The targeted platforms were suspected of facilitating P2P crypto trading without proper registration or anti-money laundering controls, which is a requirement under UK law.
Currently, there are no registered P2P crypto traders or platforms in the UK. According to Steve Smart, the FCA's executive director of enforcement and market oversight, unregistered P2P crypto traders operating in the UK are doing so illegally and pose a significant financial crime risk. Law enforcement agencies view this operation as part of a broader effort to disrupt the flow of illicit funds. The FCA has been actively pursuing enforcement actions against illegal crypto operators, including the prosecution of those running unregistered crypto ATMs and collaboration with police to arrest individuals linked to unregistered crypto exchanges.
In the past year, the FCA has also taken action against offshore platforms engaging in unlawful financial promotions and expanded its oversight of social media figures promoting high-risk crypto products. As the UK prepares to introduce a 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 of the risks associated with dealing with unregistered P2P traders, including the lack of access to the Financial Ombudsman Service or compensation schemes.