UK Authorities Shut Down Eight Unlicensed P2P Trading Platforms in London

In a major operation, 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 crypto trading activities. The sites in question were found to be facilitating direct crypto transactions between individuals without adhering to the necessary registration requirements or implementing anti-money laundering measures, thereby posing a significant risk of financial crime. According to the FCA, these platforms were operating outside the law, as they had not registered with the regulatory body, a requirement for all crypto exchange providers in the UK. The FCA has emphasized that there are currently no registered peer-to-peer crypto trading platforms in the country.

The operation involved the issuance of cease-and-desist notices and the collection of evidence for ongoing criminal investigations. The FCA's Executive Director of Enforcement and Market Oversight, Steve Smart, underscored the importance of registration, stating that unregistered peer-to-peer crypto traders are operating illegally and pose a financial crime risk.

Law enforcement views this operation as a crucial step in disrupting the flow of illicit funds. Detective Inspector Ross Flay of the SWROCU noted that unregistered traders can inadvertently enable criminals to launder and spend illegal proceeds. This enforcement action is part of a broader effort by the FCA to regulate the crypto industry, building on previous actions against illegal crypto ATMs and unregistered crypto exchanges.

The UK is set to introduce a more comprehensive regulatory framework for crypto by October 2027, with a licensing window scheduled to open in September 2026. The FCA is advising 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 and compensation schemes.