UK Authorities Shut Down Eight Unlicensed P2P Trading Platforms in London

In a coordinated effort, the UK's Financial Conduct Authority, along 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 illegal peer-to-peer cryptocurrency trading operations. The sites in question were allegedly facilitating direct transactions between individuals without adhering to the mandatory registration requirements or implementing adequate anti-money laundering measures. As a result, authorities issued cease-and-desist orders and collected evidence for ongoing criminal investigations. The FCA emphasized that operating as a crypto exchange provider in the UK requires registration, and currently, there are no registered peer-to-peer crypto traders or platforms.

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 significant risk of financial crime. Law enforcement views this operation as part of a broader strategy to disrupt the flow of illicit funds, with unregistered traders potentially enabling criminals to launder money.

This recent action follows previous enforcement measures, including the prosecution of operators of illegal crypto ATMs and collaboration with police to apprehend individuals associated with 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 more comprehensive regulatory framework for crypto by October 2027, the current focus remains on anti-money laundering compliance and financial promotions.

The FCA advises consumers to verify the registration status of firms using its online register and warns that dealing with unregistered P2P traders may result in lack of access to the Financial Ombudsman Service or compensation schemes, and poses risks associated with potentially stolen funds.