In a joint operation, the UK's Financial Conduct Authority, His Majesty's Revenue & Customs, and the South West Regional Organised Crime Unit have conducted a coordinated raid on eight sites in London suspected of facilitating unregistered peer-to-peer cryptocurrency trading. The sites were issued cease-and-desist notices, and evidence gathered is being used in ongoing criminal investigations. The FCA stated that these platforms were operating without the required registration or anti-money laundering controls, which is a violation of UK law. Currently, there are no registered peer-to-peer cryptocurrency traders or platforms in the country.
According to Steve Smart, the FCA's executive director of enforcement and market oversight, unregistered peer-to-peer cryptocurrency 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 movement of illicit funds. The South West Regional Organised Crime Unit's DI Ross Flay noted that unregistered traders can enable criminals to launder and spend illegal money.
This enforcement action builds upon previous efforts, including the prosecution of operators of illegal cryptocurrency ATMs and the arrest of individuals linked to unregistered cryptocurrency exchanges. Last year, the FCA also took action against an offshore platform for unlawful financial promotions and expanded its oversight of social media figures promoting high-risk cryptocurrency products. As the UK prepares to implement a more comprehensive regulatory regime for cryptocurrency 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 traders, including the lack of access to the Financial Ombudsman Service or compensation schemes.