In a coordinated effort to combat illicit cryptocurrency activities, the UK's Financial Conduct Authority (FCA), alongside His Majesty's Revenue & Customs (HMRC) and the South West Regional Organised Crime Unit (SWROCU), has conducted a series of raids on eight locations in London suspected of facilitating unregistered peer-to-peer crypto trading. The operation resulted in the issuance of cease-and-desist notices and the collection of evidence for ongoing criminal investigations. The targeted sites were allegedly operating without the necessary registration or anti-money laundering controls, which are mandatory for crypto exchange providers in the UK. Currently, there are no registered peer-to-peer crypto traders or platforms in the country.
According to the FCA, unregistered traders pose a significant financial crime risk. The operation is part of a broader effort to disrupt the flow of illicit funds.
Law enforcement officials have emphasized 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 crypto ATMs and the arrest of individuals linked to unregistered crypto exchanges.
The FCA has also taken action against offshore platforms for unlawful financial promotions and expanded its oversight of social media figures promoting high-risk crypto products. As the UK prepares to implement a comprehensive regulatory framework for crypto by October 2027, the FCA has urged consumers to verify the registration status of firms using its online register and warned of the risks associated with dealing with unregistered traders, including the lack of access to the Financial Ombudsman Service or compensation schemes.