In a coordinated effort, 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 sites in London suspected of operating as unregistered peer-to-peer crypto trading hubs. The operation resulted in the issuance of cease-and-desist notices and the collection of evidence for ongoing criminal investigations.
The FCA has emphasized that these sites, which enable individuals to buy and sell cryptocurrencies directly, are operating without the necessary registration or anti-money laundering measures, posing a significant risk of financial crime. Under UK law, crypto exchange providers are required to register with the FCA, and 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 doing so illegally and pose a financial crime risk.' Law enforcement agencies view this operation as part of a broader effort to disrupt the movement of illicit funds. Detective Inspector Ross Flay of SWROCU noted that unregistered traders can facilitate the movement, disguise, and spending of illegal money.
This enforcement action builds upon previous steps taken by the FCA, including the prosecution of operators of illegal crypto ATMs and the arrest of individuals linked to an unregistered crypto exchange in 2024. The FCA has also taken action against offshore platforms for unlawful financial promotions and expanded its oversight of social media figures 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 current focus remains on anti-money laundering compliance and financial promotions. The FCA is urging consumers to verify the registration status of firms using its online register and warning that dealing with unregistered P2P traders may result in a lack of access to the Financial Ombudsman Service or compensation schemes, as well as potential risks associated with transactions involving stolen funds.