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 locations in London suspected of hosting illegal peer-to-peer cryptocurrency trading activities. The sites, which facilitated direct transactions between individuals without adhering to required registration and anti-money laundering protocols, were issued cease-and-desist orders, with evidence collected to support ongoing criminal investigations. According to the FCA, these unregistered platforms pose a significant risk of financial crime, as they enable the potential movement, concealment, and expenditure of illicit funds.
The operation is part of broader efforts to disrupt channels used for laundering money. The FCA's executive director of enforcement and market oversight emphasized that operating as an unregistered crypto trader in the UK is illegal and poses considerable financial risks. This enforcement action precedes the implementation of a comprehensive regulatory framework for cryptocurrencies, slated for introduction by October 2027, with a licensing window set to open in September 2026. The FCA advises consumers to verify the registration status of firms using its online register and cautions against the risks associated with engaging unregistered P2P traders, including the lack of access to the Financial Ombudsman Service and compensation schemes, as well as potential involvement with stolen funds.