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, targeting unlicensed 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 FCA has stated that these platforms were suspected of facilitating direct cryptocurrency transactions between individuals without proper registration or adherence to anti-money laundering controls, which is a requirement for crypto exchange providers in the UK. Currently, there are no registered peer-to-peer cryptocurrency traders or platforms operating 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 acting illegally and pose a significant risk of financial crime. Law enforcement views this operation as part of a broader effort to disrupt the flow of illicit funds. Detective Inspector Ross Flay of SWROCU noted that unregistered traders can enable criminals to launder and spend illegal proceeds.
This enforcement action builds upon previous steps taken by the FCA, including the prosecution of operators of illegal cryptocurrency ATMs and collaboration with police to apprehend 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 influencers promoting high-risk cryptocurrency products. As the UK prepares to implement a comprehensive regulatory framework for cryptocurrency by October 2027, with a licensing window set to open in September 2026, the current focus remains on anti-money laundering compliance and financial promotions. The FCA is urging consumers to verify the registration status of firms using its online register and warning that dealing with unregistered traders may result in a lack of access to the Financial Ombudsman Service or compensation schemes, as well as potential risks associated with transactions involving stolen funds.