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 operating illegal peer-to-peer cryptocurrency trading platforms. The operation resulted in the issuance of cease-and-desist notices and the collection of evidence for ongoing criminal investigations. The targeted sites were allegedly facilitating direct cryptocurrency transactions between individuals without proper registration or anti-money laundering measures, contravening UK law. The FCA stressed that all crypto exchange providers must register, yet currently, no peer-to-peer crypto traders or platforms are legally registered in the country.

According to Steve Smart, the FCA's executive director of enforcement and market oversight, unregistered traders are operating illegally and pose a significant risk of financial crime. Law enforcement views this operation as part of a broader effort to disrupt channels used for illicit fund transfers. DI Ross Flay of SWROCU noted that unregistered traders can inadvertently enable criminals to launder money. This enforcement action follows previous steps taken by the FCA, including the prosecution of operators of illegal crypto ATMs and collaboration with police to arrest individuals associated with unregistered crypto exchanges.

Last year, 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 implement a comprehensive regulatory framework for crypto by October 2027, with a planned licensing window in September 2026, the current focus remains on anti-money laundering compliance and financial promotions. The FCA advises consumers to verify a firm's registration status using its online register and warns that dealing with unregistered traders may leave users without access to the Financial Ombudsman Service or compensation schemes, and at risk if transactions involve stolen funds.