TL/DR
- The FCA raided eight London sites in its first coordinated crackdown on illegal peer-to-peer crypto trading.
- The regulator said no peer-to-peer crypto trader or platform is currently registered to operate in the UK.
- The operation involved HMRC and SWROCU, with officials issuing cease-and-desist notices and collecting evidence.
- The FCA said evidence from the raids could support further action, including fines, prosecutions, or imprisonment.
Britain’s Financial Conduct Authority (FCA) has carried out its first coordinated multi-agency operation targeting unregistered peer-to-peer (P2P) cryptocurrency trading, raiding eight locations in London suspected of facilitating illegal activity.
Working alongside HM Revenue & Customs (HMRC) and the South West Regional Organised Crime Unit (SWROCU), officials inspected the premises, issued cease-and-desist notices on site ordering operators to stop immediately, and collected evidence for ongoing criminal investigations.
Steve Smart, the FCA’s executive director of enforcement and market oversight, said unregistered peer-to-peer crypto traders operating in the UK are acting illegally and pose a financial crime risk. He added that the FCA would use its powers and work with partners to disrupt them.
FCA says all UK P2P crypto trading by way of business is illegal
Peer-to-peer crypto trading allows individuals to buy and sell digital assets directly with one another, bypassing centralised exchanges. In the UK, any business or individual providing such services by way of business must register with the FCA under anti-money laundering and counter-terrorist financing rules.
However, the regulator has confirmed there are currently no FCA-registered peer-to-peer crypto traders or platforms operating in the country, meaning all such activity is illegal.
Joint operation targets financial crime risks
The operation marks a significant step in the FCA’s efforts to clamp down on unregulated corners of the crypto market. Authorities have warned that unlicensed P2P arrangements can facilitate money laundering, terrorist financing, and other serious financial crimes by enabling the movement of funds with limited visibility or oversight.
Detective Inspector Ross Flay of the SWROCU welcomed the collaboration and said joint work with the FCA and HMRC helps authorities target and disrupt illegal operations effectively.
Consumers warned to avoid unregistered crypto services
Consumers using unregistered services have little to no regulatory protection and may inadvertently expose themselves to fraud or illicit activity. The FCA strongly advises the public to deal only with firms listed on its public register and to treat crypto investments as high-risk.
This action comes as the UK continues to develop its broader cryptoasset regulatory framework. New rules expected to take full effect in late 2027 will bring additional activities, including operating certain trading platforms and issuing stablecoins, under the FCA’s oversight, with an authorisation gateway scheduled to open later this year.
More enforcement action could follow
The FCA has not publicly named the specific sites or individuals targeted, citing the sensitivity of ongoing investigations. Evidence gathered during the raids will be analysed and could lead to further enforcement action, including potential prosecutions, fines, or imprisonment for those found to be operating without the required registration.
The raids follow a series of other FCA initiatives against unregulated crypto services, including actions on illegal crypto ATMs and court proceedings against overseas platforms accused of making unauthorised financial promotions to UK consumers.
Industry participants have noted the high compliance bar for crypto firms in the UK, which has so far resulted in no authorised P2P operators. As the regulatory perimeter expands, both firms and individuals engaged in crypto trading are being urged to ensure full compliance or cease operations to avoid enforcement.
Consumers can check the registration status of any crypto service provider using the FCA’s Firm Checker tool. The regulator said it will continue to work closely with law enforcement partners to identify and shut down illegal crypto trading activities across the UK.
