In a coordinated effort, the UK's Financial Conduct Authority (FCA), along with HM Revenue & Customs and the South West Regional Organised Crime Unit, has launched a crackdown on unlicensed peer-to-peer crypto trading platforms in London. Eight locations were targeted, with cease-and-desist notices issued and evidence gathered for ongoing criminal investigations.
The FCA emphasized that these platforms, facilitating direct crypto transactions between individuals without proper registration or anti-money laundering controls, operate illegally and increase the risk of financial crime. Under UK law, crypto exchange providers must register with the FCA, with no registered peer-to-peer crypto traders or platforms currently operating in the country. The operation aims to disrupt channels used for illicit fund movements, with unregistered traders potentially enabling criminals to launder money.
This enforcement action builds on previous steps, including prosecutions of illegal crypto ATM operators and actions against unregistered crypto exchanges. As the UK prepares to introduce a comprehensive crypto regulatory framework by October 2027, the FCA advises consumers to verify a firm's registration status and warns of the risks associated with dealing with unregistered entities, including lack of access to the Financial Ombudsman Service and potential compensation schemes.