The UK’s Financial Conduct Authority (FCA) has carried out its first coordinated crackdown on illegal peer-to-peer cryptocurrency trading, targeting eight locations across London in a joint operation with His Majesty’s Revenue & Customs (HMRC) and the South West Regional Organized Crime Unit (SWROCU).
Officials issued cease and desist notices at each site and gathered evidence that is now fueling several criminal investigations, according to the FCA.
The FCA stated that the sites were suspected of facilitating peer-to-peer (P2P) cryptocurrency trading, where people buy and sell cryptocurrencies directly with each other, without required registration or anti-money laundering checks.
Under UK law, anyone operating as a crypto exchange provider must register with the FCA. The regulator confirmed that there are currently no peer-to-peer cryptocurrency platforms or traders registered in the country.
“Unregistered peer-to-peer cryptocurrency traders operating in the UK do so illegally and pose a risk of financial crime,” said Steve Smart, executive director of market enforcement and oversight at the FCA.
Law enforcement agencies framed the operation as part of efforts to cut off routes used to move illicit funds. DI Ross Flay of SWROCU said unregistered traders can allow criminals to “move, disguise and spend illegal money”.
The action builds on previous enforcement actions. The FCA has prosecuted illegal crypto ATM operators for several years and worked with police to arrest people linked to an unregistered crypto exchange in 2024.
Last year, it also took action against offshore platform HTX for illegal financial promotions and increased oversight of social media figures promoting high-risk crypto products.
The crackdown comes as the UK prepares to implement a broader regulatory regime for cryptocurrencies by October 2027, with a licensing window expected to open in September 2026. The current framework primarily focuses on compliance with anti-money laundering measures and financial promotions.
The FCA urged consumers to check whether firms are registered using their online register. It also warned that users dealing with unregistered P2P merchants lack access to the Financial Ombudsman Service or compensation schemes and may face risks if transactions involve stolen funds.
