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 involved in illegal peer-to-peer cryptocurrency 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 suspected of operating without the necessary registration or anti-money laundering measures, which are required by law for crypto exchange providers.
Currently, there are no registered peer-to-peer crypto traders or platforms in the UK, making these operations illegal and a potential conduit for financial crime. According to Steve Smart, the FCA's executive director of enforcement and market oversight, unregistered traders pose a significant risk.
Law enforcement views this operation as part of a broader effort to disrupt the flow of illicit funds. The action follows previous enforcement measures, 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 more comprehensive regulatory framework for crypto by October 2027, the FCA is urging consumers to verify the registration status of firms using its online register, warning that dealing with unregistered traders can leave users without access to the Financial Ombudsman Service or compensation schemes and may involve risks related to stolen funds.